THE $6 billion Oakajee port and rail development in Western Australia's mid-north has been shelved, the latest big project to be put on hold as the resource cycle cools. The decision is another big blow to the resource sector, coming just months after BHP Billiton shelved $30 billion of projects, including the huge Olympic Dam expansion in South Australia and its outer-harbour development at Port Hedland. Andrew Forrest's Fortescue Metals also dramatically scaled back its multibillion-dollar expansion plans in the Pilbara amid a sharp pull-back of iron ore prices in September. The Reserve Bank warned last month of a noticeable decline in the appetite for spending by Australian resource companies, though it did signal a more positive note by keeping interest rates steady when it met on Tuesday.
