esperance port, page-2

http://www.perthnow.com.au/business/new-players-to-lodge-esperance-port-bids/story-e6frg2qc-1226223245861



New players to lodge Esperance Port bids
by: Nick Evans, Business Reporter From: PerthNow December

AT LEAST two major infrastructure providers are readying bids to build new common-user infrastructure at Esperance Port, in an effort to cut short the running expansion saga.

PerthNow understands the unnamed infrastructure players will lodge unsolicited bids over the next month with the State Government for the $300 million expansion.

The proposals are tipped to include plans for a new common-user berth at the port, which will allow a number of emerging iron ore companies based in the Yilgarn region to access the port and begin shipping iron ore by the end of 2013.

Proponents say a new berth at Esperance will lead to billions of dollars worth of new exports from the facility, and open up the Yilgarn iron ore district.

A suite of iron ore hopefuls have projects in the Yilgarn, north of Kalgoorlie, and say a port and rail solution could lead to an additional 20 million tonnes of iron ore leaving the state each year.



Port problems dog Buswell
Port space problem stifling expansion

But running disputes over the management of the Esperance expansion, along with State Government initiated reviews of WA ports, have slowed progress.

An earlier plan for unlisted iron ore company Cashmere Iron to fund and build the expansion attracted criticism from other regional players who were left out of the first stage of the plan, with initial allocations reportedly promised to a small group of rival mining companies.

Macarthur Minerals and Golden West Resources have both told shareholders they have tonnage allocations in the 10 million tonne a year first stage of the expansion.

Other companies nearing mining include Mindax, Jupiter and Legacy Iron Ore. Cazaly Resources has a $180 million sale of its Parker Range project on hold, pending resolution of the port issue. Cliffs Natural Resources already ships 8-10 million tonnes of iron ore a year from Esperance.

Cashmere is understood to have recently completed an engineering study into the design of the expansion, but has not announced firm plans to fund its proposal.

Any new proposal will need to keep the earlier players happy, as well as offer some space to their rivals.

PerthNow understands the new proposals have the support of the bulk of the iron ore hopefuls in the region, including a number of those with pre-existing agreements.

Sources say the infrastructure players preparing bids are likely to move to accommodate Cashmere, by compensating the company for their engineering work to date.

The State Government has the final call over how the project will progress, however Transport Minister Troy Buswell was cool today on the prospects of the government accepting an unsolicited bid in order to get the project moving.

He is understood to prefer a tender process, though this would leave questions open over how existing agreements could be accommodated, and may take longer than some miners would prefer.

“I am aware of a lot of industry interest in infrastructure investment at the Esperance Port. However, the Port’s engagement with the private sector will be through a proper, open and accountable process,” Mr Buswell said..