barnett expects oakajee resuffle, page-34

Why is this (sino putting things on hold) a problem if the capacity can be filled by others. We already new initial capacity was well below foundation requirements. If mmx has a plan to fund and I would say they must. The ball is still focused on the potential cost blowout. If sino really want to pull stunts like this tell them to f off! And deal with people that want to play. China is not going to be the only Client what about India. I think as long as every one else stays in and I think they will we should be ok.

Under threat?

The Magnetite Network's Executive Director Megan Anwyl does not believe the Oakajee project or the industry is under threat.

"The announcement does not necessarily mean the port will not proceed, so I think that it is jumping to conclusions," she said.

"There are magnetite projects from the very south with Grange Resources down near Albany right up to near Port Hedland with Atlas Iron.

"The important thing is that there are a whole range of projects that are under construction or about to start construction and I do not have any evidence that they are going to stop construction.

"It is important in terms of magnetite at the moment that both State and Federal governments get behind these projects".

Magnetite miners have since thrown their support behind the Oakajee project, showing no sign they will follow Sinosteel's lead.

Gindalbie Metals' Managing Director Tim Netscher says the company is a foundation customer of Oakajee and has no plans to withdraw.

Gindalbie is developing a magnetite mine at Karara in a joint venture with Chinese steel producer AnSteel.

"For production beyond 16Mtpa, Karara requires the development of Oakajee Port and has signed a memorandum of understanding as a foundation customer of the project," Mr Netscher said.

"We continue to be engaged in constructive negotiations with all parties involved".

Analyst Peter Strachan also believes it is not the end of Oakajee.

"What Sinosteel has done is basically called Oakajee Port and Rail a bluff," he said.

"It is saying 'We are out of here unless you can build this thing. We are not going to go ahead blindly - we need to see some certainty in the process'".

"They are not saying 'We are going away and we are never going to build this mine at all'".

Mr Strachan predicts the Weld Range project will be back on board within six months.

Meanwhile, one of the proponents of the Oakajee Port and Rail Project, Murchison Metals, placed its shares in a trading halt following Sinosteel's announcement after its share price fell by more than 5.5 per cent.

Murchison is expected to make an announcement to the ASX by next week.

It will hopefully shed some light as to whether the Oakajee project is still on track for a 2015 start up, three years after its original due date.