juniors face delay but not axo

So Atlas, BCI FerrAus, how much is that berth worth to you??

Juniors face delay on WA port expansion

16th March 2009, 7:30 WST



Plans to boost port capacity for the Pilbara’s junior miners by 50 million tonnes a year have been delayed by at least a year amid uncertainty over how the multi-million-dollar development will be funded.

Days after the multi-user berth at Utah Point received its final sign off, the timetable to build additional berths at South West Creek at Port Hedland has been pushed back from 2012 to at least 2013.

Port Hedland Port Authority chief executive Andre Bush said all funding options were being considered, but suggested there was no guarantee the WA Government would help fund the project through the port authority, as it did for Utah Point.

“I think Utah was a different situation because it was sorting out freeing up capacity at the existing berth and moving our manganese and chrome (stockpiles) across there, so there were numerous reasons to facilitate … a contribution (from the State Government),” Mr Bush said.

“At the moment we’re looking at development options and (as to) who owns and develops it — that’s in a state of flux at the moment.”

Mr Bush would not commit to a 2013 timeline but said the port authority wanted to see the berths developed “in a timely manner”.

“Often the port authority is driven by the timeline set by the proponents,” he said. “There obviously needs to be commitment to the berth in one way or another.”

The South West Creek development will see three capesize berths built near Harriet Point at Port Hedland.

Two of the berths, capable of handling 50mtpa, were earmarked last year by the Carpenter government for the Pilbara’s junior miners. The third will be used by Gina Rinehart’s Hancock Prospecting.

Among those relying on the development to go ahead are North West Iron Ore Alliance members Atlas Iron, BC Iron, Brockman Resources and FerrAus, which collectively hope to produce more than 52mtpa from 2013.

Utah Point is intended to be up and running by mid-2010 but only has capacity for about 18mtpa.

Alliance chief executive Justin Walawski said the group was “crossing its fingers” the additional space would be made available sooner rather than later, but conceded 2013 was “probably the shortest (possible) time frame”.

“We can use that (50mtpa) and more,” he said. “At the moment we are working with both the port authority and the State Government on the terms of agreement between ourselves and the port,” he said.

The multi-user berths at South West Creek and Utah Point are intended to free up space for junior miners at Port Hedland’s fast-congesting inner harbour.

KATE EMERY