Congratulations to MMX, most interesting "giving the Infrastructure Provider a 50 year lease over the rail network corridor and an area of the port where it will operate an iron ore berth and associated materials handling equipment and stockpiles." - this effectively is midwest life of mines plus more. _________________________________________________________
Colin Barnett Premier (includes Federal-State Relations; Public Sector Management; Government Accountability); State Development
Fri 20 March, 2009
Oakajee agreement to unleash Mid-West’s potential Portfolio: Premier, State Development
The Liberal-National Government has moved a step closer to the development of a major new deepwater port and a new, open access railway in the State’s Mid-West by today signing a Development Agreement with Oakajee Port and Rail Pty Ltd (OPR).
Premier Colin Barnett said a proposed $4billion development at Oakajee, 25km north of Geraldton, could attract major new resources processing and export industries to Western Australia.
“The development of a deep sea port, associated rail infrastructure and a purpose-built, world class industrial estate at Oakajee is the single most important project for WA’s economic development over the next 50 years,” Mr Barnett said.
The Premier said the State Development Agreement for the Oakajee Port and Rail Project included:
appointing OPR on an exclusive basis, as the Infrastructure Provider to design and construct a port and a railway linking the port with mining tenements in the Weld Range and Jack Hills, based on an open access regime
providing State and/or Federal Government funding for common-use infrastructure including the channel, breakwater, turning basin, navigational aids, provision for tug and pilot boat pens, port administration offices and roads and utilities
giving the Infrastructure Provider a 50 year lease over the rail network corridor and an area of the port where it will operate an iron ore berth and associated materials handling equipment and stockpiles.
giving private and state-owned Chinese companies the opportunity to be involved in the project through the provision of rail cars, fabricated structural steel, engineering and construction services and financing.
Mr Barnett said that as a result of the agreement OPR would spend $160million on further investigative studies, but that the project was dependant on a positive bankable feasibility study, due for completion by March 31, 2010.
The Government and OPR would also need to negotiate an implementation agreement, that detailed terms and conditions for the development of port and rail infrastructure.
Up to 2,000 jobs could be created during the construction phase of the port and rail, with 400 personnel operating the infrastructure when complete.
“Today’s Development Agreement is an important step towards the creation of a multi–user, deep water port, capable of handling Cape class bulk carriers and linked by rail to the rich and diverse mineral fields of the Murchison and Northern Goldfields,” the Premier said.
“This infrastructure will be government-owned with port users being charged for its use on a commercial basis.
“Along with the port and rail project, the State Government plans to develop a fully serviced 6,500ha heavy industrial estate to accommodate sophisticated minerals processing facilities and open a new chapter in our State’s and the nation’s economic development.”
Mr Barnett said that the State had submitted a proposal through the Infrastructure Australia process for the Commonwealth to fund 50 per cent of the total common-use infrastructure costs of $678million.
“If the project’s feasibility is established and funding secured, construction could begin in 2010-11 with export shipments starting in 2013-14,” he said.
“This project envisages a major new export port, industrial precinct and heavy freight transport access, near a major regional centre, but well away from residential areas and with significant capacity for future expansion.
“Once exporting from Oakajee begins, iron ore exports through Geraldton Port will be capped at 12 million tonnes a year, almost treble the 4.4mt handled in 2007-08.”
GWR Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
