by: Rebecca Lawson From: PerthNow February 25, 20124:45PM
THE new owner of the $6 billion Oakajee port and rail project is set to meet with interested Chinese parties in Beijing next month.
Speaking on the sidelines of the official opening ceremony of Apache Corp’s Devil Creek gas project, Premier Colin Barnett said he was pleased that Japan’s Mitsubishi Corp had purchased Murchison Metals’ share in the infrastructure project.
The premier also said the Japanese company was now in direct negotiations with Chinese steel mills and Chinese state-owned enterprises
“There will be a major meeting in Beijing in March this year and all the players, including the State Government, will be involved, and I hope from that we will see the first, large scale Australian, Chinese, Japanese project.”
Murchison shareholders this month approved a $325 million deal to sell its 50 per cent stake in the Oakajee project to Mitsubishi. Murchison had admitted to difficulties in financing the massive infrastructure project.
Mitsubishi has previously said it would look to include China in the development of the project, which will unlock the vast resource potential of the Mid-West region.
It’s understood that Mitsubishi wants to lock in a partner for the project in the next six to 12 months, and that it could sell a 30 to 50 per cent stake in the project.
It's speculated that China’s Sinosteel or Baoshan Iron & Steel could be likely partners.
