there wil be blood, page-27

FROM SMH

Mid West iron ore hopefuls Gindalbie Metals and Asia Iron are not concerned by a cap on export volumes through Geraldton port, saying the limit only comes into place once the nearby Oakajee port is ready.

Opposition infrastructure spokesperson Alannah MacTiernan today said iron ore miners in the region will face delays in start-up operations of at least three years due to an "arbitrary" iron ore export cap imposed by Premier Colin Barnett.

"While setting this cap, the Premier did not consult industry and was unable to give any credible explanation for the cap figure of 12 million tonnes per annum," Ms MacTiernan said.

"The Geraldton Port Authority told Parliament during Budget Estimates that at least one company ready to start iron ore shipments from Geraldton Port in the next two years will be denied access as a result of the cap added by Mr Barnett to the Oakajee deal."

She added that Parliament was told that either Asia Iron or Gindalbie will not be able to start exports in 2011, and will be forced to wait at least three years until Oakajee is operational.

"This will mean the orderly development of the iron ore industry in the Mid West will be compromised and jobs lost, at a time when we need to stimulate employment," Ms MacTiernan said.

Geraldton Port currently has a cap of some 25 million tonnes per annum.

Gindalbie spokesperson Michael Weir told WA Business News the company is not concerned about the 12 million tonnes a year cap, which understood to come into play when the Oakajee port is operational.

"We're not concerned about it at this stage," he said.

"We're looking to get into production as soon as possible and our project will be going through Geraldton port and we've got good government support to get the project into production as well."

"We are very confident that we will have capacity that we need to be exporting about 10 million tonnes out of Geraldton Port in 2011 when we start production."

The company has secured land for iron ore storage at Geraldton port and has approval to start construction. It has also secured berths 5 and 7 for exports.

Gindalbie's Karara iron ore joint venture is expected to underpin the Oakajee port when it comes online, anticipated in 2014.

Asia Iron managing director Bill Mackenzie said he had concerns over the cap however a clarification was needed in relation to when it would start.


AND FROM BARNETT

Fri 20 March, 2009

Oakajee agreement to unleash Mid-West’s potential
Portfolio: Premier, State Development

The Liberal-National Government has moved a step closer to the development of a major new deepwater port and a new, open access railway in the State’s Mid-West by today signing a Development Agreement with Oakajee Port and Rail Pty Ltd (OPR).

Premier Colin Barnett said a proposed $4billion development at Oakajee, 25km north of Geraldton, could attract major new resources processing and export industries to Western Australia.

“The development of a deep sea port, associated rail infrastructure and a purpose-built, world class industrial estate at Oakajee is the single most important project for WA’s economic development over the next 50 years,” Mr Barnett said.
The Premier said the State Development Agreement for the Oakajee Port and Rail Project included:

appointing OPR on an exclusive basis, as the Infrastructure Provider to design and construct a port and a railway linking the port with mining tenements in the Weld Range and Jack Hills, based on an open access regime

providing State and/or Federal Government funding for common-use infrastructure including the channel, breakwater, turning basin, navigational aids, provision for tug and pilot boat pens, port administration offices and roads and utilities

giving the Infrastructure Provider a 50 year lease over the rail network corridor and an area of the port where it will operate an iron ore berth and associated materials handling equipment and stockpiles.

giving private and state-owned Chinese companies the opportunity to be involved in the project through the provision of rail cars, fabricated structural steel, engineering and construction services and financing.

Mr Barnett said that as a result of the agreement OPR would spend $160million on further investigative studies, but that the project was dependant on a positive bankable feasibility study, due for completion by March 31, 2010.

The Government and OPR would also need to negotiate an implementation agreement, that detailed terms and conditions for the development of port and rail infrastructure.

Up to 2,000 jobs could be created during the construction phase of the port and rail, with 400 personnel operating the infrastructure when complete.

“Today’s Development Agreement is an important step towards the creation of a multi–user, deep water port, capable of handling Cape class bulk carriers and linked by rail to the rich and diverse mineral fields of the Murchison and Northern Goldfields,” the Premier said.

“This infrastructure will be government-owned with port users being charged for its use on a commercial basis.

“Along with the port and rail project, the State Government plans to develop a fully serviced 6,500ha heavy industrial estate to accommodate sophisticated minerals processing facilities and open a new chapter in our State’s and the nation’s economic development.”

Mr Barnett said that the State had submitted a proposal through the Infrastructure Australia process for the Commonwealth to fund 50 per cent of the total common-use infrastructure costs of $678million.

“If the project’s feasibility is established and funding secured, construction could begin in 2010-11 with export shipments starting in 2013-14,” he said.


“This project envisages a major new export port, industrial precinct and heavy freight transport access, near a major regional centre, but well away from residential areas and with significant capacity for future expansion.


“Once exporting from Oakajee begins, iron ore exports through Geraldton Port will be capped at 12 million tonnes a year, almost treble the 4.4mt handled in 2007-08.”

Premier's office - 9222 9475



THE MIDWEST INFRASTRUCURE WARS CONTINUE TO RAGE !!
THERE WILL BE WINNERS AND THERE WILL BE LOSERS.
AND THERE WILL BE BLOOD.