BEIJING (Dow Jones)--Three Chinese companies are in talks with Japanese conglomerate Mitsubishi Corp. (8058.TO) to invest in the Oakajee port-and-rail project in Western Australia, the 21st Century Business Herald reported Wednesday, citing an unidentified official with Sinosteel Group Corp., one company it said was involved in the talks. The other two companies are Anshan Iron & Steel Group Corp., the country's third-largest steelmaker by output, and China Railway Materials Co., one of the country's largest construction companies, it said. The three companies are jointly negotiating under the auspices of the National Development and Reform Commission, the country's top economic planner, it added. The Western Australia government has become frustrated by slow progress on the Oakajee project, which is slated to become the state's second-largest iron-ore output hub after the Pilbara. Delays stem largely from Murchison Metals Ltd.'s (MMX.AU) inability to fund its share of the project. Murchison agreed last month to sell its 50% stake to Mitsubishi, giving it full ownership of the venture. Western Australian Premier Colin Barnett expressed the state's welcome of Chinese participation in the project in December, as "Chinese companies have major interests in Mid West iron projects and China is likely to be the biggest customer for the region's iron ore." Of the 14 iron ore projects currently in development or planned in the region, at least eight involve significant Chinese interests, including Anshan Iron's iron-ore project with Gindalbie Metals Ltd. (GBG.AU) and Sinosteel's Weld Range project.
MMX Price at posting:
41.5¢ Sentiment: None Disclosure: Not Held
