Chinese rail firm buys Yilgarn Infrastructure stake

<p>Along with buying stakes in Australian iron ore mines, north Asian companies are increasingly investing in related infrastructure projects, especially in Western Australa’s mid west region.</p> <p>South Korea’s Posco and Japan’s Mitsubishi are already involved the Oakajee port and rail project.</p> <p>And now China Railway Materials Commercial Corp (CRM), a major Chinese rail infrastructure provider, will invest in unlisted public firm and major Oakajee player Yilgarn Infrastructure and hold a 20% stake in it, <em>China Daily</em> reported yesterday (Wednesday, December 20).</p> <p>"This is not only a good investment for CRM, but also a good project for China because China can secure access to iron ore resources in that region," Yilgarn chairman John Saunders was quoted as saying.</p> <p>"By getting involved in the infrastructure building, China can achieve low iron ore transport costs from the mines to the port and will have very competitive iron ore prices." </p> <p>Mr Saunders said China National Overseas Engineering Corp and China Harbour Engineering Co Ltd would possibly be involved respectively in building the rail network and the port.</p> <br />