PERTH (miningweekly.com) – Project vehicle Oakajee Port and Rail (OPR) has welcomed ASX-listed Murchison Metals’ decision to sell its interest in the infrastructure project, saying that it was a critical step in the delivery of the Mid-West project.

OPR CEO John Langoulant said on Monday that the A$325-million purchase of Murchison Metal’s share by project partner Mitsubishi Development confirmed that company’s long-term commitment to the infrastructure project.

“The ownership structure delivers greater project certainty and will underpin the completion of key tasks, required to see the project move into construction,” said Langoulant.

In November, Japan’s Mitsubishi agreed to buy Murchison’s 50% stake in the Oakajee and Crosslands Resources joint ventures for A$325-million in a move to rescue the infrastructure project, as well as the Jack Hills iron-ore mine, in Western Australia.

Murchison has indicated that it would seek a strategically aligned equity partner for the two projects, and the project schedule was largely dependent on the outcome of these negotiations.

To date, more than A$250-million has been spent on progressing project planning, evaluation, engineering and securing regulatory approvals for the port and rail infrastructure, Langoulant said.

“The technical aspects of this project, along with the necessary approvals, are well advanced. Independent peer reviews, including value engineering assessment, have identified OPR’s port and rail design as the optimal solution to meet the government’s scoping requirements,” he added.

OPR was developing the 45-million-ton-a-year port and rail Oakajee project at an estimated capital cost of A$5.94-billion.
 

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