quite interesting.Contractors ready to roll as port project...

quite interesting.

Contractors ready to roll as port project awaits nod

3rd March 2009, 8:00 WST

The WA Government’s $225 million Utah Point project to expand Port Hedland’s iron ore export capacity will not be included in an audit of capital works projects and could receive its final tick of approval within days.

Contractors are mobilising at the Port Hedland site, which is good news for those Pilbara miners whose ambitions depend on the new multi-user berth being up and running by next year.

But uncertainty remains on the final timetable as the project awaits ministerial approval following conditional Environmental Protection Authority support.

Fears the Utah Point port expansion, which includes a berth and stockpile area, could be at risk emerged in January after the Barnett Government flagged an audit of existing capital works projects.

Utah Point was considered to be in doubt given that no tenders had been put out for it.

But the Government and the Port Hedland Port Authority (PHPA) confirmed Utah Point would not be included in the audit and was only waiting the final environmental tick for work to start.

“Tenders have been let and, subject to environmental approval, the project will proceed,” a Treasury spokesman said.

PHPA chief executive Andre Bush said tenders had been awarded for the construction of the concrete wharf, with further mechanical, structural and electrical tenders — including earthworks for stockyards and roads — to be put out once the project received the final green light.

“It should be (completed) during the second quarter of 2010 — that’s when we’re certainly targeting,” he said. “(But) that’s a tall order”.

Mr Bush said a definite timetable could not be established until final approvals were received — although he expected them “within days”.

Development of a bulk commodity export berth at Finucane Island on the western side of the port was approved by the Carpenter government in 2007.

It was intended to counter increasing congestion at Port Hedland and free up space for emerging iron ore producers that might otherwise struggle to gain port access. The berth will boost port capacity by more than 15 million tonnes a year.

The $225 million cost includes $120 million of port borrowings and $105 million from foundation customer pre-paid charges and capital contributions. Originally intended to be up and running by the end of this year, the project has been hit by a series of delays, including a lengthy environmental approval process and a change of State Government.

The EPA has recommended to the Minister for the Environment that the project be approved, but with a condition that stockpiles be removed from the west end of Port Hedland to minimise dust and noise.

At risk from any further delays are the Pilbara miners that are counting on the berth to be operational by next year, including Atlas Iron and Aurox Resources, which have both signed on as foundation customers.

Atlas is in a stronger position than most of the juniors, given it has an interim deal to use Fortescue Metals Group’s rail and port facilities.

But the deal only covers Atlas’ first year of production and if it is not renewed the junior is banking on being able to access Utah Point from next year.

KATE EMERY