FYI, article in todays The Age. If this statment proves to be correct "will this month sign a development agreement with the WA government for the construction of port and rail infrastructure to service the midwest region." then this may be devastating for GWR as there is No rail proposal for Weld Range to Wiluna West in Murchison-Crosslands presentations and proposed development timelines are 2013+. DYOTDHs. ___________________________________________________________
Agreement will give WA miners certainty Ben Sharples March 5, 2009 - 4:34PM
Murchison Metals Ltd says Western Australia's midwest mining companies will be given the certainty of expanded infrastructure when an agreement is signed this month with the state government.
Oakajee Port & Rail (OPR) is a joint venture between iron ore miner Murchison and Japan's Mitsubishi Development Pty Ltd, and will this month sign a development agreement with the WA government for the construction of port and rail infrastructure to service the midwest region.
The long-mooted infrastructure is crucial to the development and expansion of a number of iron ore mines in the region, and the agreement should bring to a close a long and often confusing process.
OPR won a tender in July to develop the port north of Geraldton, beating Chinese-backed private outfit Yilgarn Infrastructure.
Yilgarn, however, has not conceded defeat and has pressed its case to develop a rail network to service the midwest mines, submitting a $2 billion proposal with the WA government in February.
Murchison executive chairman Paul Kopejtka says the development agreement will confirm OPR as the developer of rail and port infrastructure and provide "clarity and certainty" to the midwest miners.
The port and rail infrastructure could cost around $3.5 billion and is expected to be operating by late 2012.
WA Premier Colin Barnett has identified the project as essential infrastructure for the development of the state and has proposed a funding contribution of $339 million towards construction.
Mr Barnett said the state government would seek matching funding from the federal government, alleviating some concerns about future financing for the project.
Mr Kopejtka and Murchison managing director Trevor Matthews are in the eastern states to sell the concept to investors, but have found the company in the headlines for a different reason.
Chinese-outfit Sinosteel Corporation on Tuesday revealed it had increased its stake in Murchison to 5.85 per cent, from about 4.5 per cent earlier.
"It really is a sideshow to the main event," Mr Kopejtka told AAP in Melbourne on Thursday.
The two companies aren't strangers, with both battling it out for control of iron ore miner Midwest Corporation Ltd last year, a joust that was won eventually by Sinosteel with a $1.36 billion cash bid.
Murchison's interest in Midwest was spark by its need to extract synergies through the joint development iron ore resources.
GWR Price at posting:
29.3¢ Sentiment: Hold Disclosure: Held
