ASX ANNOUNCEMENT ASX Code: MMX17 November 2011RESPONSE TO MEDIA...

ASX ANNOUNCEMENT ASX Code: MMX
17 November 2011
RESPONSE TO MEDIA REPORT
Murchison Metals Limited (“Murchison”) notes a media report in today’s edition of the Australian
Financial Review referring to an alternative rail route to the Oakajee port.
Oakajee Port & Rail (“OPR”), in which Murchison holds a 50% economic interest, is the only party with a
rail route and corridor to the Oakajee project which has been approved by the WA Government.
The approval of OPR’s rail corridor, which was announced by the WA Government on 20 October 2011,
represents formal endorsement of the rail route nominated by OPR for heavy-haul rail access to the
proposed port at Oakajee.
OPR’s government-approved corridor includes a proposed connection point to the existing southern rail
network at a point north-west of Mullewa.
The approval of OPR’s rail corridor followed a lengthy and comprehensive approvals and community
consultation process, and is a key step preceding the introduction into State Parliament of a Special Act
that is required for construction of the rail to be undertaken. Any alternative rail proposal would be
required to undergo a similar process, and require the passage of similar rail-enabling legislation.
While the report states that another party has “secured” land to build a spur line to Oakajee, Murchison
understands that an application has been lodged for a miscellaneous licence under the WA Mining Act
and that the application has attracted numerous objections. Furthermore, Murchison understands that a
miscellaneous licence is not, of itself, sufficient for the construction of rail.
Given the extensive planning, evaluation and engineering undertaken since late 2007 to achieve the
currently advanced state of project design and regulatory approvals in areas such as environment and
heritage, Murchison believes that OPR remains the most appropriate vehicle for the project’s
development, regardless of whether OPR retains its exclusive rights to develop the port and northern
rail infrastructure beyond the end of 2011.
OPR’s infrastructure has been specifically designed to provide a regional solution that maximises the
opportunities for emerging miners across the mid-west, based on the principle of open access, in
accordance with government requirements. A Pilbara-standard, heavy haul railway will provide the
basis for cost effective future expansion and underpin the region’s long term economic development.