Murchison surges on Oakajee-China talks

24/07/2009 - 09:20

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Shares in Murchison Metals have surged as much as 24 per cent today after the miner clarified the extent of talks with China over the Oakajee port and rail project.

Murchison surges on Oakajee-China talks

Shares in Murchison Metals have surged as much as 24 per cent today after the miner clarified the extent of talks with China over the Oakajee port and rail project.

The miner is a 50 per cent owner of the developer of the $4 billion project, Oakajee Port and Rail, with Japan's Mitsubishi Corporation owning the balance.

Yesterday, Murchison placed a trading halt on its shares pending the release of details regarding the OPR joint venture.

Representatives of OPR are in currently in China, attending joint meetings with Premier Colin Barnett, who has been vocal about his position regarding Chinese investment in WA projects.

In a statement today, Murchison said that as a result of the meetings, a number of initiatives have been jointly developed that OPR intends to pursue.

These include a proposal for China Communication Construction Company would provide design assistance to OPR and continuing talks with China Railway Construction Corporation over potential strategic cooperation for the project's rail component.

Also included was a trade and investment mission to WA in September by Chinese businesses interested in becoming involved in the Oakajee project .

"OPR has reported that the discussions with the Chinese groups have been very positive, with high levels of interest in co-operation in the development of the mid-west region," Murchison said.

"Discussions with the Chinese groups are continuing and any material developments will be reported to the market."

Shares in Murchison jumped 37 cents, or 24 per cent, to a high of $1.90 before closing at to $1.795.

 

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