Western Australia Premier Colin Barnett

Western Australia Minister for State Development Colin Barnett

Changes To Oakajee State Agreement

Victor P Taffa

• Exclusivity arrangements in Oakajee State Development Agreement end from January 1, 2012
• Government will talk to all parties interested in developing the Oakajee port and rail access
• Government will continue to work with OPR partners, including about revising project and Chinese involvement

The Western Australian Government will continue to work with the Oakajee Port and Rail (OPR) partners, despite the exclusive arrangement expiring on December 31, 2011.

Premier and State Development Minister Colin Barnett said that from January 1, 2012, OPR would no longer have exclusive rights over the project, opening the way for the Government to work with industry to attract new partners to deliver the Oakajee project.

Mr. Barnett said the State Government and the OPR partners had agreed to remove the exclusive arrangement in the Oakajee State Development Agreement.

The Premier said the change would create new opportunities for:

• Attracting Chinese involvement in the project
• Reducing the capital cost of the project, including consideration of staging its development
• Separating infrastructure development and mining interests.

“Oakajee will be built Western Australia needs a deepwater port in the Mid-West to unlock the region’s potential.” Mr. Barnett said.

“The State Government will continue to work with OPR as a proponent, but we will also be considering a broader range of options.”

“Mitsubishi’s plan to purchase Murchison’s interest in the project and to seek another partner is a very positive development.”

“The Government will continue to encourage Chinese participation.”

“This is vital to the project because Chinese companies have major interests in Mid-West iron projects and China is likely to be the biggest customer for the region’s iron ore.”

“We are also very interested in considering proposals for reducing the cost of the project.”

“Our aim is to find a solution that suits all the players in the region – this will ensure the success of the project.”

The Premier said that the State Government and the Oakajee parties had also agreed that neither party would seek compensation, nor pursue issues of intellectual property in relation to the changes.

Fact File

• Mid-West magnetite iron ore reserves are estimated at more than 13 Billion tonnes
• Magnetite iron ore is preferred by Chinese steel makers
• Currently there are at least 14 Mid-West iron ore projects under way, committed or planned. At least eight have significant Chinese interest