Oakajee Port W.A
Perth, Mar 20, 2009 AEST (ABN Newswire) - Murchison Metals Limited (ASX:MMX)(PINK:MUMTF)(Murchison) is pleased to announce that the Premier of Western Australia, the Honourable Colin Barnett, MLA today signed a State Development Agreement with Oakajee Port & Rail (OPR) for the Oakajee port and rail infrastructure project.
Key Points
- WA Government executes key legal agreement for development of mid-west infrastructure
- Murchison's 50% owned OPR granted exclusive right to build and operate port and associated key rail infrastructure.
- WA Government committed to construction of common user infrastructure at Oakajee Port
- Strengthens platform for expansion of world-class Jack Hills Iron Ore Project.
- Positions Murchison as major strategic player in mid-west region.
Murchison and Mitsubishi Development Pty Ltd (Mitsubishi), a subsidiary of Mitsubishi Corporation of Japan, each hold a 50% economic interest in OPR which will deliver a world-class open access infrastructure solution for the emerging resources industry in Western Australia's mid-west.
Execution of the State Development Agreement represents a critical milestone that provides the legal and regulatory certainty needed for the next phase in the development of the project.
Under the terms of the Agreement with the State of Western Australia, 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 kilometres 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 Infrastructure Australia.
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 Ltd (Crosslands) 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.
Crosslands recently announced a twofold increase in total Mineral Resources to more than 1 billion tonnes, comprising 96Mt @ 59% Fe of Direct Ship Material and 991Mt @ 34% Fe of Beneficiation Feed Material. Further substantial increases in the Mineral Resource are expected in the next resource statement in mid-2009.
Murchison Executive Chairman Paul Kopejtka welcomed the signing of the State Development Agreement as a major step forward for the Oakajee infrastructure project and the expansion of Murchison's iron ore mining business in the mid-west.
"Today's execution of the State Development Agreement for the Oakajee project represents a major milestone in the development of both our infrastructure and mining businesses," said Mr Kopejtka.
"The certainty delivered by the Agreement also allows all other miners in the mid-west region to now proceed with their own expansion projects.
"Through OPR, we look forward to delivering a world class infrastructure solution for everyone in the mid-west region."
Bankable feasibility studies for the Oakajee infrastructure project are expected to be completed within the next 12 months with exports from Oakajee targeted to commence in 2013.
Mr Kopejtka said the execution of the State Development Agreement highlighted Murchison's strategic central position in the development of the mid-west iron ore industry, through its interests in Crosslands and OPR.
"This Agreement brings to fruition the work carried out by Murchison, OPR and Crosslands over the past 5 years and positions Murchison to be a pivotal participant in the development of the region," he said.
Competent Persons' Statement
The information in this announcement that relates to Mineral Resources of the Jack Hills Project is based on information compiled by Mr Chris Allen in his capacity as an employee of CSA Global. Mr Allen is a Member of the Australian Institute of Geoscientists.
The information in this announcement that relates to Exploration Results and geological and mineralogical interpretations of the Mineral Resource estimate of the Jack Hills Project is based on information compiled by Mr Dean Wingfield who is a full time employee of Crosslands Resources Ltd and is a Member of the Australasian Institute of Mining & Metallurgy.
Mr Allen and Mr Wingfield have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Allen and Mr Wingfield consent to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
The Jack Hills DSO Mineral Resource comprises 26Mt of Measured, 52Mt of Indicated and 16 Mt of Inferred Resources. The Jack Hills BFO Mineral Resource comprises 69Mt of Measured, 258Mt of Indicated and 664Mt of Inferred Resources. For full details on the Jack Hills Mineral Resources refer to ASX announcement dated 4 February 2009.
Contact
Paul Kopejtka
Executive Chairman
Murchison Metals Ltd
TEL: +61-8-9492-2600
John McGlue
Director
FD Third Person
TEL +61-8-9386-1233
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