re: Ann: Announcement of Revised Project Sche... This looks more...

re: Ann: Announcement of Revised Project Sche... This looks more positive,

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Construction of Oakajee port and rail infrastructure will begin late in 2011 about six months later than planned.

Oakajee Port and Rail (OPR) Chief Executive John Langoulant says the extension in the project?s timeframe has been discussed with WA Premier Colin Barnett resulting in a formal proposal.

?While the commencement of construction will now fall into late 2011 or early 2012, a six month extension in a project of this scale and with its projected 50 year life is minor,? he says.

Langoulant says the project has been subject to an exhaustive review and that he is pleased with the outcome and strong commitment to the project from both joint venture partners.

?As the engineering study of the project?s infrastructure draws to a conclusion, we have undertaken a detailed reassessment of its timeframe,? he says.

?Following the review, OPR joint venture partners Mitsubishi Development and Murchison Metals have confirmed their confidence in the project.?

OPR comprises the development of the new 45 mtpa deep water port at Oakajee 25 km north of Geraldton and a 570 km rail project to Western Australia?s mid-west mines.

?Negotiations with the three foundation customers on detailed supply chain arrangements are about to step up,? Langoulant adds. ?The conclusion of the review is that OPR anticipates supply chain negotiations with customers to be concluded by mid 2011.

?Discussions with the state on the Implementation Agreements for the port and rail constructions are entering their final stages,? Langoulant says.

In addition, OPR expects environmental reviews for the port and rail infrastructure to be finalised by Q3 2011 and its main indigenous heritage approvals would be finalised in Q4 2011.

These approvals are essential to enable construction to commence.

Langoulant says considerable progress has already been made including a Draft Bank Feasibility Study, Memoranda of Understanding signed with three potential foundation customers and an advanced environmental impact assessment.

?Heritage and Native Title negotiation framework agreements with relevant Aboriginal groups have been developed, the rail corridor has been finalised and land access agreements have been made with 60 freehold and pastoral leaseholders to enable feasibility works,? Langoulant says.

?Project due diligence is well underway with the State, foundation customers and suppliers and Implementation Agreements with State agencies have substantially progressed.

?This is a very large infrastructure project that has few equals in the world let alone Australia,? Langoulant says.

?The need to coordinate the outcome of three foundation mines with the development of the port and rail infrastructure is complex as the differing circumstances of the mines need to be accounted for in setting reasonable timeframes for the development.?