premier on radio, page-8

Article from Aust Bulk Handling:

Murchison downplays Oakajee Port and Rail cost blowout
by ABHR Staff ? last modified Mar 23, 2011 01:08 PM
? filed under: Weekly Top Stories
Murchison Metals, in a statement to the ASX, said media claims of cost blowouts for the project will remain speculative until completion of a bankable feasibility study (BFS), due by the end of June 2011.



WA deepwater ports and rail.
Leaked confidential documents from OPR project partners Mitsubishi and external consultants predict a total cost increase from March 2010?s estimate of $4.4 to $6.7 billion, The Australian reported.

However, Murchison said that cost increases are affecting projects across the board in West Australia. In fact, a joint venture study in the ongoing BFS process dating from November 2010 predicted a capital cost of $5.23 billion.

In 2008 the commonwealth and WA governments committed $678m in funds to build the port?s common user facilities. The Australian claimed the confidential documents estimate this figure has grown to $930m.

WA Colin Premier Barnett has ruled out any increase in public funding. As it stands, the exceptional injection of revenue has already inextricably tied him to project?s successful completion.

Barnett has championed the speedy development of a new iron ore province in the state?s mid west. Time is of the essence if the area is not to miss out on the best of the mining boom. The 45mtpa deepwater port is essential to realise the export potential of junior projects currently developing in the region.

Oakajee will operate under the jurisdiction of the Geraldton Port Authority. Oakajee is located about 20 kms north of Geradton, and will be connected by rail networks to the mines, situated several hundred kilometres to the north east and south east.

Miners with projects in the mid west region include Atlas Iron, Crosslands Resources, Gindlabie Metals, Sinosteel, Mt Gibson Iron and Murchison Metals


4TK comment:

MMX is shaping up to be a multibagger in years to come. I hold a small number but will look for substantial entry if this decline continuies, the problem is it could continuie for another year or more. Less than 50cents would be an outrigth bargin IMHO.

4TK