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WA Government to sign Oakajee port and rail agreement on Friday

19th March 2009, 13:45 WST

The West Australian government has signalled that it will give formal approval on Friday for the $3.5 billion Oakajee port and rail project that is vital to the development of mining in the state’s mid-west region.

WA Premier Colin Barnett is poised to sign a development agreement with the Oakajee Port & Rail (OPR) consortium, which has been selected to construct the long-mooted port and associated facilities.

It has been estimated that the port and rail infrastructure could be operating by late 2012.

The infrastructure, which has been on the drawing board for decades, is crucial to the development and expansion of a number of iron ore mines in the midwest region.

Mr Barnett has identified the project as essential infrastructure for the development of the state and has proposed a funding contribution of $339 million towards its construction.

He said the WA government would seek matching funding from the federal government to alleviate some concerns about future financing for the project.

OPR, which is a joint venture between iron ore miner Murchison Metals Ltd and Japan’s Mitsubishi Development Pty Ltd, won a tender in July to develop the infrastructure, beating Chinese-backed private outfit Yilgarn Infrastructure.

AAP