Premier to head to China to secure $4b Oakajee funding
PDY only needs $1b
Michael Bennet in Geraldton
June 19, 2009 01:49pm PREMIER Colin Barnett will head to China next month with the head of Oakajee Port and Rail to arrange financing for the $4 billion project.
Chief executive of Oakajee Port and Rail Christopher Eves said he would go to China with Mr Barnett to talk with steel mills and suppliers of materials for goods and services for the building of the port and rail project.
But Mr Eves dodged the question of whether China would provide direct equity or debt financing for the project, saying it was a question for the companies' shareholders, Murchison Metals and Japans Mitsubishi Group.
OPR has also been in talks with companies in Japan and Korea for funding.
Mr Eves also did not totally rule out the shipment of uranium from the port saying it was a "matter for the WA Government".
Mr Eves said he sees the collapse of Rio Tinto's deal with Chinalco as "nothing but positive" for the project which is aiming to be the next major iron ore region in the country after the Pilbara.
"I think there will be renewed and extended interest in the mid-West as a result of the Rio Chinalco deal," he said.
Mr Eves said in the next few weeks OPR would announce "significant increases in its executive management team" and the project manager for the project.
OPR will also start approaching land holders in the next few weeks in relation to the rail route to the port.
The Federal and State Government have both committed $339 million to the project and Mr Eves said a number of mines in the mid-west had approached OPR to arrange rail freight agreements since the funding pledge.
But Mr Eves said no firm agreement had yet been reached because the Bankable Feasibility Study for the project will not be completed until March 2010.
"It's a bit early to talk about detailed contracts of freight but the processes and structures for negotiations for moving forward are well in place," he said.
* See this week's The Sunday Times business pages for the full rundown on the Oakajee Port and Rail project.
