Midwest is “only threat” to Oakajee plans: Yilgarn Kate...

Midwest is “only threat” to Oakajee plans: Yilgarn

Kate Haycock
Tuesday, 15 April 2008

YILGARN Infrastructure says its three years of work on the Oakajee port and rail project in the Mid-West is threatened by Midwest Corp’s refusal to nominate it to the State Government.



In a statement released yesterday private company Yilgarn said it remained committed to the State Government’s request for proposal process for the port and rail at Oakajee.

However, despite Midwest yesterday saying it wants to continue with negotiations over the proposal for the port and rail, Yilgarn’s executive chairman John Saunders said he was “deeply concerned” by Midwest’s lack of action.

The company has spent three years developing its plans for Oakajee and has a tender ready to go, Saunders said.

“We have arrangements for all the debt and equity finance necessary to make the development a reality,” he added.

“The only threat to Yilgarn’s proposal is Midwest Corporation’s failure to date to formally nominate Yilgarn to the [request for proposal] process.”

Midwest has confirmed that Yilgarn had threatened the company with legal action should it fail to nominate Yilgarn for the $A3 billion port development after the two companies signed an agreement last year over the infrastructure work.

The iron ore aspirant has, however, insisted on taking its nomination of Yilgarn to a shareholder vote due to a complicating relationship with steelmaker Sinosteel.

Sinosteel, which has launched a takeover bid for Midwest, is one of Yilgarn’s backers, but Yilgarn said yesterday it did not believe the two companies were associates and Midwest’s actions were unnecessary.

Midwest has until May 9 to make its proposal to the State Government, but comments from Midwest yesterday that it would hold talks with the State Government over the process have fuelled speculation the company will seek to have that deadline extended.

Midwest’s rival – and one-time attempted buyer in a failed takeover attempt last year – Murchison Metals took the opportunity yesterday to tell the market that its port and rail proposal was “on track”.

The company has a 50% interest in Oakajee Port and Rail with Japanese company Mitsubishi Development, and said yesterday it would be able to submit its plans for the Mid-West development by the deadline.

Shares in Midwest were last trading at $5.85, down 1c this morning, while Murchison was last at $3.70, up 3c.