From miningnews.net

WA govt delays Oakajee agreement


Monday, 1 December 2008

THE Western Australian government has pushed back the deadline on the development agreement for the Oakajee deepwater port project in the state’s iron ore-rich Mid West region.



Colin Barnett

On Friday, the state government announced that it would extend the finalisation date for the Oakajee agreement from November 30 to February 28, 2009 as it waited for an indication of federal funding through the Building Australia infrastructure fund before finalising the agreement.

“The development of Oakajee Port is a priority for the Liberal-National government and I am hopeful the federal government will see it as a crucial nation-building project to provide some funding through Building Australia,” WA Premier Colin Barnett said.

In July, Oakajee Port and Rail (OPR) – the infrastructure provider backed by iron ore play Murchison Metals and Japan’s Mitsubishi Corporation – won the right to develop the Oakajee port over Yilgarn Infrastructure, the infrastructure arm of rival iron ore group Midwest Corporation.

OPR expects to begin detailed negotiations with the Mid West miners early in 2009.

The Oakajee Port project is expected to cost $A3-3.5 billion, up from previous estimates of around $2 billion.

Construction of the port is expected to begin by late 2009, with first operations expected as early as 2012.

Oakajee was one of five priority projects submitted for Building Australia funding consideration in the Liberal-National government’s submission in October.

"with first operations expected as early as 2012."

Now that's what I call optimism!

The port planned for Oakagee is a key part of the development of Western Australia. By the year 2050 it is estimated that Geraldton and surrounding areas will reside the second largest population in the state. The royalties and associated work will provide an economic boost estimated at greater than 1 billion dollars per annum !!.

I have no knowledge of this project, but work on another multi-billion dolar project.
The timing of the FID (Final investment decision) is the trigger to start the ball rolling. Once this stage of the project is reached and approved, it's game on.

It's probably confidential but if you found out how far they are from FID (FID minus 3, means 9 months to go), you could estimate how much longer you will have your playground

As our current federal environment minister once sang.

"who can stand in the way, when there's a dollar to be made"

Enjoy it while it lasts

Paul Kelf said...

king of the point said...

Could be a potential speed run

Agree, might loose the waves but you could gain a great speed spot

The chart below is the share price chart of Murchison Metals. It doesn't look like the chart of a company that is about to embark on a multi $b project. It looks like the furthest thing from its mind is borrowing more money in this market environment. Personal opinion only, I think we will see major delays on this one.

Just about ever mining company on the ASX has a chart looking similar to the one above. A whole lot of non-mining companies too for that matter. It doesnt really matter what the share price is doing more if they have/can get the cash to do it.

10/12/2008

Mr Barnett re-confirmed the state government will contribute the funds required to build the outer harbour of the $700 million Oakajee deepwater port development.

He said the income stream that will be generated from the port will pay off the government's commitment.

Mr Barnett said the port will be the state's most important project for WA for the next 20 to 30 years.

www.businessnews.com.au/article/WA-energy-supply-in-limbo-Barnett

YES THE IMAGE IS DISTORTED ....and is not completly to scale ....................
Google OPR and have a look there.

Its apart of the shock and get used to it campagine.

save the gee, the place rocks ,were else can ya catch a dhuie on alure in 12ft of water.chek the pics taken on afine off shore morning last winter.

she was smokin yestdi so much happiness.