OPR on target for project go-ahead – Part Two

By Paula Wallace

To read Part One of this story click here

Oakajee Port and Rail (OPR) is the developer of project which will create a deepwater port, 25 km north of Geraldton, linked to regional mines by approximately 570 km of rail.
Unique partnership
The Oakajee project represents a unique investment partnership between an independent infrastructure provider, government, the private sector, and Australian and international partners.
OPR was established in September 2007 to pursue a joint venture between Murchison Metals Ltd and Mitsubishi Development Pty Ltd, each of which has a 50 per cent economic interest in OPR.
The western Australian and federal governments have committed $678 million for the construction of the common use port infrastructure, including channel, turning basins and breakwaters. OPR will construct and operate the infrastructure and the Western Australian government will own the facilities.
The Oakajee Port and Rail State Development Agreement signed in March 2009 provides the springboard for the development of major iron ore mines and other resource projects in the region.
Under the Agreement:
.OPR secured exclusive rights for the development of the port infrastructure and northern rail infrastructure to ensure an integrated and seamless supply chain;
.The state and federal Governments committed to contribute funds for the construction of the outer harbour common use infrastructure, such as channel, turning basins and breakwaters;
. OPR would construct and operate the common use port infrastructure on behalf of the state government, which would own the facilities;
.OPR would fund, operate and own the private use port infrastructure and its integrated open access rail; and
.Opportunities would be identified for local, Australian, and international entities (including private and state owned Chinese) to potentially participate in the project.
Targets achieved
The project is working toward financial close and project go-ahead – a decision due late 2010, early 2011.
OPR has achieved all its target development milestones in 2009 and its achievements to date include:
.Signed confidentiality agreements with key mine customers to form a basis for negotiations;
.Signed agreements with landholders in the rail feasibility corridor to access land for study purposes;
.Contract awarded for the design of rail bridges;
.Completed drilling investigations over the port dredge area;
Completed basis of design document;
.Assessment levels for both the terrestrial port and the rail parts of the project determined by EPA as Public Environmental Review (4 week public review period);
.Commenced environment and Aboriginal heritage surveys in the rail feasibility corridor and port site;
.Completed a review of the cyclonic and non-cyclonic wave conditions on the marine structures at Oakajee;
.Commenced detailed modelling and analysis of Long Wave Period impacts at Oakajee.
“This is a complex, infrastructure project with a huge range of challenges. We are diligently working through them and assembling a team of experts to ensure our project is an efficient solution for mid-west miners,” Vorster said.

Source: Australian Journal of Mining – www.theajmonline.com.au