MURCHISON’S INFRASTRUCTURE ARM WINS WA GOVERNMENT PORT SELECTION PROCESS
29 July 2008
Murchison Metals Limited (“Murchison”) is delighted to announce that Oakajee Port & Rail (“OPR”)
has been selected as the preferred proponent to develop the Oakajee Port in the mid-west region
of Western Australia.
The Western Australian Government today announced that OPR was the successful proponent
under its formal selection process.
OPR is a joint venture between Murchison and Mitsubishi Development Pty Ltd, each of which has
a 50% economic interest.
The selection of OPR adds to the valuable strategic position of Murchison in the evolving mid-west
region where significant consolidation is already underway.
Following the signing today of a Letter of Process Agreement with the Government, OPR will now
move to finalise the Development Agreement with the Government that will underpin the
development of the required transport infrastructure.
OPR is planning to build a major new cape size port facility at Oakajee north of Geraldton to serve
the mid-west region’s burgeoning iron ore industry. It also proposes to build new rail infrastructure
to allow the mid-west miners to transport their ore to the port for export to world markets. OPR
plans to commence discussions with the WA Government as soon as possible to finalise the route
for the rail infrastructure – a decision that will determine the commencement date for shipments
from the new Oakajee port.
Murchison’s 50%-owned mining venture Crosslands Resources Ltd will be a key foundation
customer. OPR expects that Midwest Corporation (in which Murchison holds a 10% interest)
Gindalbie Metals and Golden West Resources will also be foundation customers.
Selection of the OPR consortium is positive news for Crosslands which requires new port capacity
to be brought on stream as quickly as possible for its planned Jack Hills Stage 2 Project.
The bankable feasibility study for Jack Hills Stage 2 is due for completion in 2009. The Stage 1
project is currently producing at a rate of 1.5mtpa, ramping up to a rate of 1.8mtpa by the end of
calendar 2008.
Murchison Executive Chairman Paul Kopejtka said the selection of OPR as the preferred
developer was a great boost for Murchison and for the much larger Jack Hills Stage 2 Project and
represents the high point of nearly 4 years of hard work by a team of dedicated professionals.
“We have always believed OPR’s infrastructure proposal was the most compelling, robust and the
best solution for the needs of the mid-west,” said Mr Kopejtka.
“We are thrilled to now have the opportunity to participate in the delivery of this exciting port and
rail infrastructure that will unlock the value of the region.
“Congratulations to the outstanding OPR team and the consortium members involved, including
P&O, ARG, Thiess and the syndicate of financiers comprising the four major Australian banks and
leading international banks, who have performed brilliantly in exceptional circumstances in
delivering the project to this stage and have all shown unswerving support for our vision, a vision
which started with Murchison back in 2004”.
Mr Kopejtka said Murchison would provide regular updates on OPR’s progress over coming
months and looked forward to ensuring successful and timely completion of the bankable feasibility
study for the Jack Hills mine expansion and associated port and rail infrastructure.
Murchison Metals Ltd
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