Geraldton alliance hoses down fracture concerns

The six-member Geraldton Iron Ore Alliance has played down talk of a fracture, claiming all of the companies involved in its Mid West rail and port project remained committed developing common-user infrastructure.

The statement from alliance, comprising six iron ore companies with operations inland from Geraldton, follows reports of a falling out between members of the group and comes a day after Gindalbie Metals Ltd stated its intention to use Geraldton Port, rather than the proposed new port at Oakajee, 25km to the north.

That news came one week after Murchison Metals Ltd sparked concerns about pre-emption of proper planning protocols when it announced the establishment of a consortium develop the Oakajee site, at an estimated $1.6 billion, without the involvement of other alliance partners.

As a result the state government said it would most likely throw open for tender the development of any rail and port infratsructure for the region.

In further news today, Murchison and another alliance member Midwest Corporation Ltd have confirmed today that they plan to work together to develop a new port at Okajee.

In a statement release today, alliance chair Clive Brown said it was important to emphasise the Alliance would continue to advocate an industry viewpoint and support the projects being developed by each member company.

"As the industry develops, there will be opportunities for two or more of the member companies to work together on projects of mutual interest," Mr Brown said.

"These projects may be carried out under the banner of the alliance, but will not involve all members simply because they are not relevant to each operation."

"A good example of this was the announcement earlier this year that three alliance members, Gindalbie Metals, Midwest Corporation and Mount Gibson Iron Limited, commissioned an independent study into developing a Strategic Transport Plan for the Mid West region's southern corridor to accommodate the rapid growth of the iron ore industry over the next five years," he added.

In relation to infrastructure development in the Northern Corridor, the alliance said it has always supported the proposed development of a new privately-funded port at Oakajee, 25km north of Geraldton, together with development of associated rail and industrial infrastructure.

Below is the full alliance release plus a relase from Murchison/Midwest Corp, both from today:

The Geraldton Iron Ore Alliance, comprising six iron ore companies in Western Australia's Mid West region, today affirmed its commitment to continue to present a common industry viewpoint for Australia's second fastest growing iron ore province - with an ongoing focus on co-operation with Government and the community to develop a coordinated approach to common-user infrastructure.

The Geraldton Alliance was formed late last year to represent the interests of the Mid West iron ore industry, particularly in the areas of infrastructure and stakeholder relations.

Alliance Chair, Mr Clive Brown, said it was important to emphasise the Alliance would continue to advocate an industry viewpoint and support the projects being developed by each member company.

"As the industry develops, there will be opportunities for two or more of the member companies to work together on projects of mutual interest," Mr Brown said. "These projects may be carried out under the banner of the Alliance, but will not involve all members simply because they are not relevant to each operation."

"A good example of this was the announcement earlier this year that three Alliance members, Gindalbie Metals, Midwest Corporation and Mount Gibson Iron Limited, commissioned an independent study into developing a Strategic Transport Plan for the Mid West region's southern corridor to accommodate the rapid growth of the iron ore industry over the next five years," he added.

In relation to infrastructure development in the Northern Corridor, the Alliance has always supported the proposed development of a new privately-funded port at Oakajee, 25km north of Geraldton, together with development of associated rail and industrial infrastructure.

A number of companies have been working together to undertake a feasibility study on the development of new port and rail infrastructure in the Northern Corridor. Two companies, Murchison Metals and Midwest Corporation, are continuing to focus on this Northern Infrastructure Feasibility Study.

"Both Murchison and Midwest have indicated in separate statements today that the recent formation of a consortium to consider the development of this infrastructure does not change the broader Alliance members view on the development of northern infrastructure, and that both companies will continue to work together and with Government on the engineering and approvals processes for the rail and port developments including the Oakajee Industrial Estate," Mr Brown said.

"For its part, Gindalbie Metals has indicated in a statement yesterday that it plans to utilise the expanded port facilities at Geraldton to accommodate the base case requirements for both its Stage 1 hematite project and Stage 2 magnetite project joint venture with AnSteel, with the future development of Oakajee representing an option to accommodate a future expansion of the project," he added.

"None of these individual company positions have impacted on the broader Alliance, which remains firmly intact, nor have they changed the Alliance's view about the pressing need for immediate decisions to be made on the public policy issues related to the northern infrastructure.

"The Alliance welcomed the announcement made by the Government in April 2006, confirming Oakajee as the preferred site for a new deep-water port, including the appointment of a special Ministerial Committee to prepare a report on the design process, timing of construction and operational management of the proposed port at Oakajee," Mr Brown said.

"The Alliance has not yet met with this Ministerial Committee and we would welcome the opportunity to do so as soon as possible, to enable the orderly and informed developed of this essential infrastructure," he added.

Below is the Midwest Corp/Murchison release from today:

Midwest Corporation Limited (ASX: MIS) and Murchison Metals Limited (ASX: MMX)
confirmed today that they will work together on the Northern Infrastructure Feasibility Study
for the development of new port and rail infrastructure in the Mid West region of Western
Australia.

For some time, Midwest and Murchison Metals have worked closely together on the
engineering and approvals processes for the rail and port developments required to
facilitate the Stage 2 expansions of their projects.

This joint effort will be conducted in liaison with other members of the Geraldton Iron
Alliance, the State Government, other potential users, and potential developers of the new
rail and port infrastructure.

Once the study is completed Midwest and Murchison Metals, in conjunction with the State
Government and other alliance members, will maximise competition by calling for bids to
fund, construct and operate the infrastructure.

Murchison Metals Executive Chairman Paul Kopejtka and Midwest Chief Executive Officer
Bryan Oliver said it was an easy decision for Midwest and Murchison Metals to agree to
work together.

"This agreement on the Northern Infrastructure Feasibility Study was a logical step for
Midwest and Murchison Metals because it was already happening in practice, the State
Government is keen for us to work together and it makes sense from a cost perspective,"
they said.