16/02/2010 - 10:00

Oakajee demand exceeds initial capacity

16/02/2010 - 10:00

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Demand for capacity at the $4 billion Oakajee deepwater port has surpassed the initial stage one allocation, underpinning a case to potentially expand capacity at the port beyond stage two.

Demand for capacity at the $4 billion Oakajee deepwater port near Geraldton has surpassed the initial stage one allocation, underpinning a case to potentially expand capacity at the port beyond stage two.

Developer Oakajee Port and Rail today said it had received nominations from Mid West miners for more than the initial, stage one capacity of 35 million tonnes each year.

"[The demand] takes the project to a new level of confidence in terms of economic viability, which is great news for the range of stakeholders who have given such outstanding support to the development of the Oakajee project," new OPR chief executive John Langoulant said.

"It also demonstrates that there is potential to expand the project beyond its initial stage 1 capacity."

Crossland Resources, 50 per cent owned by Murchison Metals, said today that it had lodged its interest for capacity at the Oakajee port while Gindalbie Metals has previously stated that it will commit foundation tonnages to the port from its Karara iron ore project.

OPR's call for capacity interest was carried out as part of feasibility studies, which is expected to be completed this year.

OPR said it was now conducting detailed analysis of the tonnage nominations - including assessments of timing, volumes and financial capacity - to determine the composition of the allocation of stage one export tonnages.

The company added that a number of miners have expressed an interest in port capacity at expansion stages two and beyond.

The port is due to start operations in late 2013 or early 2014.

 

 

The announcement is below:

 


Oakajee Port & Rail (OPR) is pleased to announce that it has received nominations from mid-west miners in excess of the initial stage 1 capacity of 35 million tonnes per annum (mtpa) at the new Oakajee port.

The formal call for capacity nominations was undertaken by OPR as a critical element of feasibility studies, which are currently being undertaken for the Oakajee project.

OPR Chief Executive John Langoulant said it was pleasing to see the high level of demand.

"This takes the project to a new level of confidence in terms of economic viability, which is great news for the range of stakeholders who have given such outstanding support to the development of the Oakajee project.

"It also demonstrates that there is potential to expand the project beyond its initial stage 1 capacity."

Mr Langoulant said the State and Federal Governments deserved great credit for their vision in supporting the project.

"OPR and the miners in the mid-west appreciate the efforts of the Premier and his Government as a whole, who have put their weight behind the Oakajee project," he said.

"This is through direct financial assistance, supported by the Commonwealth, particularly for common user infrastructure, and through enormous assistance from many arms of the Government in facilitating and progressing this important and complex project."

OPR is now conducting detailed analysis of the tonnage nominations - including assessments of timing, volumes and financial capacity - to determine the composition of the allocation of stage 1 export tonnages.

OPR has achieved all its target development milestones for 2009, on the path to final go-ahead. During 2010, OPR will focus on finalising supply chain agreements and the completion of feasibility studies.

The project is tracking toward a project go-ahead decision and financial close.

The port is due to commence operations in late 2013/early 2014.

A number of the miners have expressed an interest in port capacity at expansion stages 2 and beyond.

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