Murchison Metals Ltd. said a number of Chinese groups are interested in helping develop the A$4 billion ($3.3 billion) Oakajee iron ore port and rail project in Western Australia.
Murchison Metals Ltd., an Australian iron ore company, said a number of Chinese groups are interested in helping develop the A$4 billion ($3.3 billion) Oakajee iron ore port and rail project in Western Australia. Murchison"s joint venture with Mitsubishi Corp., Oakajee Port & Rail Pty, has held meetings with Chinese groups and Western Australia"s Premier Colin Barnett in China, Perth-based Murchison said today in a statement. China Communication Construction Co. Ltd. may provide design assistance to the joint venture and talks are under way with China Railway Construction Corp Ltd. about ?strategic co- operation? for the rail part of the project, Murchison said. ?Discussions with the Chinese groups have been very positive with high levels of interest in cooperation in the development of the mid-west region,? Murchison said. Murchison shares rose 17 percent to A$1.795 at the 4:10 p.m. Sydney time close on the exchange. That was its biggest gain since May 11.
Barnett said yesterday he had met with Sinosteel Corp. officials and encouraged China"s largest iron ore trader to participate in the planned project.
Murchison last year won a government tender to develop the project. The Murchison and Mitsubishi proposal beat a rival bid by a Chinese-backed group and Midwest Corp., now owned by Sinosteel.