Chief heads to China for Oakajee talks

The West Australian June 20, 2009, 10:00 am

The head of the consortium behind the Oakajee port and rail development will travel to China with the WA Premier, Colin Barnett, next month to meet potential suppliers for the $4 billion project.

Oakajee Port & Rail chief executive Chris Eves is also expected to discuss possible funding arrangements, having previously flagged that OPR is ready and willing to tap the deep pockets of China's banking sector.

Mr Barnett has directed OPR to include Chinese suppliers in the construction of Oakajee. Chinese steel mills are expected to provide much of the steel for the rail network.

Speaking in Geraldton yesterday, Mr Eves said discussions with some suppliers, including Chinese Communication and Construction Corporation, Angang and China Railways, had already begun.

"I'll be going up to China with the Premier to continue those discussions and talk to those steel mills," he said.

Mr Eves expected to see "renewed and extended" interest from China Inc in WA's Mid-West in the wake of the collapse of Rio Tinto's alliance with Chinalco in favour of a Pilbara iron ore joint venture with BHP Billiton.

"What has until now been three international suppliers of ore have overnight become two and what that means is that if you're a purchaser of ore, you need to start to diversify your supply. And we are here and open for business," he said.

Mr Eves also addressed the question of whether uranium could be shipped through Oakajee, saying that while the planned location of the port may "lend itself" to handling uranium because it was not in a residential area, it was a question for the State Government.

"(But at the moment) we are building an iron ore bulk commodity supply chain," he said.

He said OPR had not been approached by the Government with regards to uranium.

OPR is expected to announce a handful of new appointments over the next few weeks to beef up its executive and management team.

The group has also started talks with landholders in the area whose properties may be affected by the proposed railway.

The consortium is jointly owned by Mitsubishi and iron ore hopeful Murchison Metals, which includes Chinese steel maker Sinosteel among its shareholders.

KATE EMERY

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