Just received the below news (as expected):
West Australian Premier Colin Barnett is planning to address recent developments at the Oakajee port & rail infrastructure project at 3pm in Perth today, after Sinosteel's decision to pull the plug on its AUD 2bn Weld Range iron ore project, a spokesperson for the premier said.
The move by the Chinese metals company could potentially jeopardize the AUD 6bn Oakajee project to proceed in its current structure.
This also comes as Murchison Metals [MMX:AU], the half owner of the project along with Japanese trading house Mitsubishi [8058:JP], is due to submit a bankable feasibility study on the project by an extended deadline of 30 June.
Shares of Murchison, which fell nearly 6% today to AUD 0.765, were placed under a trading halt on Thursday shortly after the announcement by Sinosteel.
Sinosteel said that it decided to definitively put Weld Range on hold until certainty around the Oakajee project can be resolved. It was previously one of the three foundation customers for the port.
As reported, the state and federal governments have together committed AUD 678m in funding for the project and will provide advice on how to best implement the infrastructure.
