The Premier of Western Australia Colin Barnett has said that the resolution of the Oakajee port and rail development matter is merely weeks away. He said that the project was the most difficult one that he had worked on as Premier in his three years in office, but he was confident that it would commence soon.
The Oakajee project will help the development of many iron ore mine in the mid-west region of Western Australia. This will allow the state to experience a rapid increase in iron ore export as the new deepwater port north of Geraldton comes up.
The project has had the personal support of Premier Barnett as it will result in excess of $300 million in tax revenue. A number of delays and cost increases in the construction of the infrastructure have made locals anxious about the project going through.
Premier Barnett said that the current negotiations will change the ownership structure of the project. It would also involve bringing in Chinese investors as the current owners Mitsubishi and Murchison are unable to activate the funds that escalating costs are demanding at the project. He added that a lot will be happening in the next few weeks -- the next few weeks are quite vital.
The terminal project near Geraldton, 430 kilometers north of the Western Australia capital, Perth, would have the capacity to export 45 million metric tons of iron ore a year. Industry sources say a staged development of the Oakajee rail network would allow for a southern rail line to be built to Gindalbie Metals' Karara mine before a northern line to projects planned by Murchison and China's Sinosteel.