barnett flags changes to oakajee ore project

Source:http://www.bloomberg.com/news/2011-09-10/barnett-flags-changes-to-oakajee-ore-project-australian-says.html

Barnett Flags Changes to Oakajee Ore Project, Australian Says

By Jason Scott - Sep 10, 2011 12:51 PM GMT+1000


Western Australia State Premier Colin Barnett said an announcement detailing an overhaul of the A$5.9 billion ($6.2 billion) Oakajee iron ore port and rail development is ?weeks away,? The Australian reported.
Negotiations that would allow for major changes to the project?s ownership structure, which may involve bringing in Chinese parties as investors in the infrastructure, had been continuing for some time, Barnett told the newspaper.
The talks include a proposed staged development of Oakajee rather than the ?big bang? project initially envisioned by Perth-based miner Murchison Metals Ltd. (MMX) and Japan?s Mitsubishi Corp. (8058), The Australian said.
The Oakajee project is designed to underpin the development of several iron ore mines in Western Australia?s Midwest region, allowing a rapid increase in exports through a new deepwater port north of Geraldton, The Australian said. A series of delays and cost blowouts in building the infrastructure have threatened to scuttle the project, it said.
Oakajee Port & Rail Pty, jointly owned by Mitsubishi and Murchison, was in March given an extra nine months by the state government to decide whether to fund and build the development, extending the deadline to Dec. 31.
The terminal project near Geraldton, 430 kilometers (267 miles) north of the Western Australia capital, Perth, would have the capacity to export 45 million metric tons of iron ore a year.
Oakajee Port & Rail in August 2010 signed initial agreements with potential customers of the project including Karara Mining Ltd., a venture between Gindalbie Metals Ltd. (GBG) and China?s Anshan Iron & Steel Group and Sinosteel Midwest.