barnett wants aqa/ioh jv before approval

Missed his deadline of end of year and now Barnett wont commit to a timetable for Anketell- wants IOH and AQA to form a joint venture but confident it will happen. An Anketell decision will prove interesting for what Aquila's strategy regarding Bungaroo.

"PREMIER Colin Barnett has told Fortescue Metals Group and Aquila Resources to bury their differences and form a joint venture to develop the Anketell Port.

Speaking at the launch of the State Government’s new port strategy today, Mr Barnett gave the clearest indication yet he would insist that a third party be responsible for building and operating the port - saying he would not countenance a single iron ore company controlling the new development.

“I’m not going to have one iron ore company control a port and hold another iron ore company to ransom,” said Mr Barnett.

“I’m not going to allow that, so the two companies need to come together – my suggestion to them is that together to form a new entity, maybe a (joint venture) to develop a port, and they bring in independent infrastructure providers to manage that construction and manage the port.”

Aquila Resources and Fortescue spent much of last year sparring over the size and the timetable for the new port, which would initially allow the shipment of 100 million tonnes a year of iron ore from the Pilbara. This could eventually be expanded to a 350 million-tonne-a-year capacity.

The two companies are known to have been discussing potential joint venture arrangements, but those discussions have not yielded a tangible result to date.

Mr Barnett was expected to announce the preferred proponent for the development late last year, but today refused to put a timetable on a State Government decision.

But he had a blunt message for Aquila and FMG, indicating he was unlikely to back either company if they bid to control development of the port individually.

“This is not a competition for Anketell, even though some of the companies may portray it that way,” Mr Barnett said.

“What I would like to see is the companies coming together and appointing a third party as the major infrastructure provider. That’s where we’re trying to get to.”

The lack of a decision has become a problem for Aquila in particular, which is trying to find the capital to back its $5.8 billion plans for port, rail and iron ore mines in the Pilbara.

Last year, Aquila Resources boss Tony Poli admitted lack of State Government backing was becoming a stumbling block in his attempt to raise the necessary capital.

Mr Barnett says the Anketell port “will happen” but the right structure needs to be in place before he gives his blessing to a preferred provider. "

http://www.perthnow.com.au/business/fmg-aquila-resources-told-to-form-a-jv-to-develop-anketell-port/story-e6frg2r3-1226261147667