Murchison Metals has announced that the Western Australian Premier Colin Barnett has signed a State Development Agreement with Oakajee Port & Rail (OPR) for the Oakajee port and rail infrastructure project.
Murchison and Mitsubishi Development, a subsidiary of Mitsubishi Corporation of Japan, each hold a 50% economic interest in OPR, which will deliver an open access infrastructure solution for WA’s mid-west resources industry.
Under the terms of the Agreement, OPR has the exclusive right to build and operate both the port and the associated northern rail infrastructure required to deliver product to port.
OPR also has a non-exclusive right to construct rail infrastructure south of Geraldton.
The WA Government has also committed to invest directly in the construction of the common user portion of the port at Oakajee, 25 km north of the mid-west city of Geraldton.
The Government has estimated the capital cost of the outer harbour construction at $678 million and has made a request to the Federal Government to contribute 50% of this capital cost through InfrastructureAustralia.
Execution of the State Development Agreement also provides certainty on infrastructure for the Stage 2 Expansion of the world class Jack Hills Iron Ore Project owned by Crosslands Resources which is also jointly owned by Murchison and Mitsubishi.
Feasibility studies for the Jack Hills Expansion are on track for completion within 12 months, targeting first production in late 2012.