Aspiring iron ore miner Murchison Metals has finalised a consortium of four companies to study the potential $1.6 billion development of rail and port infrastructure in the state's Mid West region.
Aspiring iron ore miner Murchison Metals has finalised a consortium of four companies to study the potential $1.6 billion development of rail and port infrastructure in the state's Mid West region.
Aspiring iron ore miner Murchison Metals has finalised a consortium of four companies to study the potential $1.6 billion development of rail and port infrastructure in the state's Mid West region.
Executive chairman Paul Kopejtka said the formal non-binding memorandum of understanding provided a "fundamental framework" for the funding, construction and operation of the infrastructure.
It also provided specific commitments for the four companies to jointly conduct a feasibility study into development of a new port at Oakajee, north of Geraldton, and rail links to planned iron ore projects in the region.
Murchison has previously announced that it was in discussions with Posco Engineering and Construction Company, a subsidiary of South Korean steel giant Posco, and Australian logistics company Toll Holdings.
The fourth previously unnamed member of the consortium is Japanese trading house Mitsubishi, which had attempted last year to form a joint venture with Gina Rinehart's Hancock Prospecting to develop the Hope Downs iron ore project in the Pilbara.
Murchison said the infrastructure project was estimated to cost $1.6 billion.
This did not include the $180 million Murchison expected to spend establishing its Jack Hills stage 2 mine, which would have annual output of 25 million tonnes.
Mr Kopejtka said the proposed infrastructure would be designed to cater for several big iron ore projects that were currently being evaluated.
He added that the MOU allowed for participation by other companies in the region, which include Midwest Corporation and Gindalbie Metals, and their joint venture partners.
Mr Kopjtka said the ultimate capacity of the rail infrastructure would be 100 million tonnes per annum while the port ultimately would be able to handle 140 million tonnes per annum.
The state government was currently assessing infrastructure options for the Mid West region but has previously stated that it would prefer to see a privately funded project.
"We are working very closely with the state government," Mr Kopejtka said.
"The government is assisting us with ensuring the approvals are in place so we can commence shipping in 2010."