OAKAJEE port underpins the strong future of WA�s Mid West magnetite and haematite iron ore region with Sinosteel�s action driving the essential review of the project needed, according to Nationals Agricultural Region Members Max Trenorden and Philip Gardiner. �The Oakajee port project will need some restructuring, but the underlying forces which justified the port remain,� Mr Gardiner said.
�The cessation of Sinosteel�s current plans to develop the Weld Range project does not mean the irrelevance of the requirement for, and investment in, the Oakajee port infrastructure.
�Instead, it will be the catalyst for a review and restructure of the project by government.
�Shipment of iron ore is already occurring from mines in the Mid West region and the ramping up of production from the Gindalbie�s Karara mine, the most advanced of the Mid West producers, will see the capacity of the Geraldton port exceeded in only a few years.
�Oakajee port is essential.�
He said any delay in progressing development of the Oakajee port would likely be an enormous opportunity cost to the revenue and economic growth of the Mid West region.
�Recent discussions with the producing and prospective producing iron ore miners located in the Mid West region and who intend shipping through Geraldton/ Oakajee, have revealed the uncertainty which has been governing how these companies have been progressing their mining investments and associated power and water infrastructure planning and development over recent months,� Mr Gardiner said.
�Sinosteel�s indefinite deferment of the Weld Range project will change the priorities determining the rail network web, the routing of iron ore to Oakajee and the ownership structure of the Oakajee port to ensure its development.
�The state agreement will need to be reviewed, adjusted and updated.
�Reassessment needs to be made of the necessity for constructing a new, connecting railway line from Geraldton to Oakajee so that iron ore from Karara and other south east Mid West miners, as volumes build in the near term and exceed capacity that can be handled by the port of Geraldton, have access to a port.
�That can only be Oakajee and it needs this railway connection.
�There is no shortage of iron ore capable of being mined in the Mid West to justify the commerciality of the Oakajee port development.�
Both Gardiner and Trenorden are confident that government addressing those changes to the corporate structure and ownership of the Oakajee project; together with the priorities of the development and construction of the rail network, power and water infrastructure with consequential ownership implications; will enable the state to get on with realising this crucial infrastructure and emerging wealth.
MMX Price at posting:
76.5¢ Sentiment: LT Buy Disclosure: Held
