Fortescue still working on Oakajee port study

Fortescue is still mulling a stake in Sinosteel’s $9.7 billion Oakajee port, rail, and iron ore mine nearly two years after it began a “rapid” study into the long-stalled project.

Fortescue in July 2022 signed a memorandum of understanding to assess Chinese-backed Sinosteel’s magnetite project and development of Oakajee’s rail and port components near Geraldton.

At the time Fortescue said the process would take 12 months, after which it would, if feasible, acquire up to 50 per cent of the magnetite project and all the port and rail infrastructure.

But nine months after that self-imposed deadline there is no word yet on the outcome of the study.

A Fortescue spokesperson told Business News the company remained committed to the project but did not answer whether the study had been completed.

“We continue to work with Sinosteel on this important opportunity,” they said.

First mooted in the 1960s, Oakajee got a head of steam under the Barnett government’s regime from 2009.

By 2013 Mitsubishi had placed it on ice due to a depressed iron ore price.

The port was embroiled in controversy a year later when project partner Padbury Mining spuriously claimed it had secured $6 billion to progress the project.

That sent the former ASX-lister’s share price rocketing 170 per cent over what turned out to be a dud deal with hair regrowth entrepreneur Roland Bleyer.

In 2019 the project was purchased by Sinosteel from Japan’s Mitsubishi to add to its existing Weld Range mine project in the Mid West.

The proposed port’s surrounding industrial estate is now being looked at for industries involved in decarbonisation such as ammonia, green steel, and hydrogren.

Those projects, it is hoped, could spur a smaller iteration of Oakajee port.

Oakajee was among three major port projects which rose to prominence during the 2010s which have since faded into obscurity.

There are no plans to resurrect Australian Premium Iron’s proposed $7.4 billion, 350 million tonnes per annum multi-user Anketell Port.

The $4 billion, 50mpta Todd Corporation-backed Balla Balla Port halfway between Port Hedland and Karratha is also understood to have been axed.

Business News could not reach anyone from the private New Zealand company to confirm this.

The company maintains a large stake in Red Hawk Mining which is instead looking to Port Hedland and other proposed ports to export iron ore.