Mitsubishi quashes Oakajee rumours

Mitsubishi Corporation says recent press speculation claiming the Japanese conglomerate wants to pull out of building a new iron ore export port at Oakajee near Geraldton is "completely groundless".

Murchison Metals and Mitsubishi are equal joint venture partners in Oakajee Port & Rail, which is developing the deepwater port in the state's midwest to overcome congestion at Geraldton Port and unlock the value of several new iron ore mines in the region.

The companies are also partners in Crosslands Resources, which is mining the bulk commodity at its Jack Hills project in the midwest.

"The recent rumours regarding Mitsubishi's withdrawal from its Western Australian mining and infrastructure joint ventures are completely groundless, and our involvement and commitment to these projects remains entirely unchanged," Mitsubishi said in a statement issued by Murchison.

"Through our joint ventures (Crosslands Resources and Oakajee Port & Rail), we continue to make every possible effort to drive forward the feasibility studies of these projects, with our target set at the first shipment of iron ore in 2014."

Murchison executive chairman Paul Kopejtka said he was pleased to see the matter put to rest.

"Murchison has a very good working relationship with Mitsubishi and it has been frustrating for all of us to see Mitsubishi's commitment to our projects questioned," Mr Kopejtka said.

"We look forward to now getting on with the development of these two world class projects."

Shares in Murchison closed up 2.5 cents, or 1.53 per cent, at $1.66 after reaching a high of $1.745 in intraday trade.