yilgarn: good news for gbg

DOW up, FTSE up, Bush and the US fed to step in should things turn sour on the US front ( Goto CNN Money web for this story ), and a public holiday on Monday in the US = BIG DAY FOR GBG Monday. Below is an update for the Yilgarn project which is very important to GBG transportation plans, looks dam good and a great read. Its early but I'm calling it, $2.50 on close for GBG Monday, too many boxes are starting to be ticked off, and there all positive.

Regards

FRank



Friday Aug 31 16:48 AEST
Yilgarn Infrastructure Ltd's plans for new port and rail infrastructure to support iron ore mines in Western Australia's midwest region appear closer to becoming a reality.
The private company has drawn some heavyweight Chinese backers into the mix, including the firm behind what is arguably the largest port in the world, China Harbour Engineering Company Group.
China Harbour will meet with the WA government on Monday to show off its credentials with major infrastructure projects and presumably win more support for Yilgarn's ambitions.
Yilgarn executive chairman John Saunders said the Chinese partnerships were crucial to the viability of Yilgarn's $3 billion proposal, which includes the construction of a new deepwater port at Oakajee near the port of Geraldton and a 465 kilometre railway connecting the port with iron ore mines in the region via a branch network.





Dr Saunders acknowledged the sea and wind conditions at Oakajee were very difficult but there was "no question" China Harbour had the expertise to build a new large scale port there.
Yilgarn is considered by some industry observers to be the frontrunner in the long-standing push for new open access, multi-user infrastructure in the midwest, which is vital to bring iron ore from the mines to port and address capacity constraints at the currently congested Geraldton Port.
A rival bid by iron ore producer Murchison Metals Ltd received a setback in June, when an agreement with fellow iron ore miner Midwest Corporation dissolved and Midwest instead allied itself with Yilgarn.
Last week, Yilgarn secured debt finance with China's EXIM-Bank and China Development Bank, and the equity and balance sheet support of five major Chinese companies, including China Railway Materials Commercial Corporation, China Railway Engineering Corporation and China Communications Construction Corporation.
"The critical test of this project is getting financial close," Dr Saunders said.
"The Chinese banks, in funding the port and rail infrastructure, will turn to the balance sheets of AnSteel, Sinosteel and other Chinese buyers ... to secure the contracts.
"They will not look at the balance sheets of the mines, they will not ask for cost guarantees from the mines, they ... are confident that there are reserves there.
"They will not be looking at the balance sheet of the (WA) government in any way, or guarantees, cross guarantees or high level take or pay (contracts) from the mines.
"That security structure is critical to financial close."
The proposed timeline for the development includes WA government and Environmental Protection Authority approval by late 2008, and operation by late 2010 or early 2012.
Dr Saunders said most, if not all, of the iron ore from the region was China-bound.
Yilgarn proposes continuing its relationship with the Chinese companies for projects overseas, particularly in China and the Middle East.
It expects to list on the Australian stock exchange late this year or in early 2008.