murchison metals may sell part of oakajee

Source
http://www.abc.net.au/rural/news/content/201106/s3245395.htm

Murchison Metals may sell part of Oakajee

Thursday, 16/06/2011

Speculation is mounting that Murchison Metals will sell some of its stake in Western Australia's Oakajee Port and Rail project

The project is a joint venture with Japanese giant Mitsubishi.

With costs blowing out from $3.8 billion to $5.2 billion, Murchison is under increasing pressure to allow other Chinese-backed miners to buy in, ensuring WA's mid-west iron ore industry has affordable access to a deepwater port.

Murchison said earlier this year it would consider all funding options to meet its obligations to the project.

Alex Passmore, head of research at Paterson's Securities, says Mitsubishi Corporation would be the most likely buyer of Murchison Metals stock.

"I would have thought so, because it keeps the ownership structure relatively simple with the existing parties in there," he said.

"I would assume they have a first right to and they may be able to go to a wider audience after that."