MMX 0.00% 4.7¢ murchison metals ltd

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    Confidential information has revealed that major changes are required to the $4.3 billion Oakajee Port plan.

    The revelations put more pressure on Premier Colin Barnett over the port, following a request by its proponents last week for an extension of time.

    The information obtained by The West Australian is in a document by technical experts GHD, which says the plan will not meet long-term export objectives.

    The report says Oakajee Port and Rail's proposal does not provide for the export needs of the Oakajee industrial estate.

    The document, the 2040 Oakajee Port Master Plan, is a forecast of issues in relation to the port and its long-term needs. Dated August, it identifies "significant issues" that need immediate attention.

    It recommends that infrastructure additions to support any non-iron ore trade through the port be considered soon.

    The report finds the potential to use a third Cape-sized ship berth for alternative cargoes would be lost if actual through-put was lower than expected, or if the iron ore trade was to grow.

    Geraldton Port Authority's vision for the project includes "infrastructure at Oakajee that seamlessly integrates the port and the industrial estate".

    Such integration would require significant changes to Oakajee Port and Rail's plan, the GHD report says.

    "The port master plan represents the first of many steps in the hierarchy of port development," it states.

    Any expansion of iron ore export over 70 million tonnes per annum - "even with a single proponent" - could not happen with the existing land available, it says. To expand beyond this, the port would need to cut into the escarpment, reclaim land from the sea or drastically redraw estate plans.

    Oakajee Port and Rail has said the port initially plans to operate at 45mtpa but the rail system would be built to handle up to 100mtpa. Oakajee is a joint venture between Murchison Metals and Mitsubishi Corporation. Their exclusive mandate to build the port expires in April.

 
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