OPR ownership restructure to deliver greater project certainty

The successful completion of Mitsubishi Development acquisition of Murchison Metals stake in OPR and Crosslands (the developers of the Jack Hills mine) was a “critical step” in the delivery of the flagship mid-west infrastructure project, OPR said in a statement.

OPR chief executive John Langoulant AO said the $$325m purchase confirmed MDP’s long-term commitment to the infrastructure project and the wider mid-west.

“The ownership restructure delivers greater project certainty and will underpin the completion of key tasks, required to see the project move into construction,” Langoulant said.

Mitsubishi Development, wholly owned by Mitsubishi Corporation, one of the largest trading and investment companies in Japan, has indicated it would seek a strategically-aligned equity partner.

The OPR project schedule is largely dependent on the outcome of these negotiations.

Project update
To date, more than $250m has been spent progressing project planning, evaluation, engineering and securing regulatory approvals for the port and rail infrastructure.

Langoulant said the technical aspects of this project, along with necessary approvals, are well advanced.

“Independent peer reviews, including value engineering assessments, have identified OPR’s port and rail design as the optimal solution to meet the government’s scoping requirements,” he said.

Commonwealth environmental approvals for the project have been secured and Conditional State approvals have been recommended by the Environmental Protection Authority (EPA) and are now awaiting ministerial approval.

State-specified project performance requirements include:

• Development of an integrated logistics chain
• Open access arrangements for third party port and infrastructure users
• Berthing capacity for cape-size vessels
• Breakwater design to sustain no appreciable damage during preferably two successive 1-in-100-year storm events
• Port and rail infrastructure capable of at least 35mtpa throughput, with capability for staged expansion.