From the "Business Spectator" today:Japanese confident on...

From the "Business Spectator" today:

Japanese confident on Oakajee funds
TOP News
By a staff reporter

Mitsubishi Development Ltd and Murchison Metals Ltd are confident Japanese banks come to the rescue if local lenders pull funds out of the Oakajee Rail and Port development.

Mitsubishi vice president of iron ore Saburo Takeuchi told reporters the company would still provide the funding and assistance it has committed to the project, even if Murchison failed to successfully negotiate its share of financing with local banks, which are struggling to source credit.

Mr Takeuchi went further to say its international banking syndicate, headlined by the major Japanese firms, would back the proposal with or without full support from Australian banks.

"Our discussions with the Australian bank are still very robust...I would also add that its not only the Australian banks that are on board with us," he said.

"Obviously the three major Japanese banks, Mitsubishi UFJ, Mizuho, Mitsui...I think we're in a very strong position."

He also named Royal Bank of Scotland and HSBC as part of the joint venture's international backers.

The contract with the West Australian government was won by a joint venture between Murchison and Sydney-based Mitsubishi, called Oakajee Rail and Port (ORP).

The partnership beat out a competing proposal by Yilgarn Infrastructure, owned by the Chinese government and nominated by Midwest Corporation Ltd.

OPR chief executive Christopher Eves declined to reveal the results of internal forecasts of capital expenditure, operational expenditure and rates of return, citing commercial confidentiality.

He also dismissed chances of Yilgarn launching a successful challenge to the decision, under the guise of competitive process, or of building its own rail infrastructure.

"There is no competitive process in relation to the rail route, so I don't see how our opponents can launch a competitive process with respect to anything."

He said port's situation had been clearly resolved and unless there was an unforeseen change to government policy, the company would proceed with the project.

Murchison managing director Trevor Matthews declined to comment on media reports that Chinese metals trader Sinosteel is making initial assessments for a possible takeover bid for Murchison.

Sinosteel has effectively blocked a Murchison bid for neighbouring iron ore company Midwest by building a controlling stake in the junior miner.

Mr Takeuchi added that he wasn't concerned about the prospect of being partnered with Sinosteel down the track, should Sinosteel make an offer for Murchison.

Murchison shares had shed 2.33 per cent by market close at $2.93.