http://www.abc.net.au/news/stories/2009/07/23/2634022.htm?section...

http://www.abc.net.au/news/stories/2009/07/23/2634022.htm?section=business

China still keen on Oakajee: Barnett

Posted 2 hours 9 minutes ago
The signing paved the way for an iron ore port and railway network in the Mid West.

The Premier signed off on the project in March this year.

The Premier, Colin Barnett, says China is showing renewed interest in the multi-billion-dollar Oakajee Port and Rail project in the Mid West.

A Japanese-backed consortium won the tender to build the $4 billion development near Geraldton, beating the Chinese-owned Yilgarn.

Colin Barnett is on a week-long trade tour in China and met executives from Oakajee in Beijing yesterday.

Mr Barnett admitted the failed Chinalco-Rio Tinto deal has soured relations between Australia and China.

But he says it is critical to have both Chinese and Japanese involvement in the Oakajee project.

"I was encouraged with meetings with Oakajee Port and Rail that understandings have been reached with Chinese organisations about the design of the port and construction of railway," he said.

"This is starting to bring China in, not only as an owner of an iron ore deposit but also very much as a participant in the whole development."

The Premier says he was told a group of Chinese companies will help to design and build parts of the Oakajee project.

"To bring in Chinese groups in designing the port and also working on the construction of the rail line are big steps forward, and it seems to me that while there has been some hesitancy within China about the Oakajee project, it seems to me that interest has been renewed."

Mr Barnett says Australia needs to continue encouraging Chinese investment in Australian projects.