State agreement on rail and port stands, Midwest claims

<p>Midwest Corporation has reaffirmed the validity of a 30-year-old state agreement which it said gave it a clear passage to build infrastructure links crucial to the development of Western Australia’s iron ore-rich mid west.</p> <p>Midwest and its non-binding partner Yilgarn Infrastructure &#8211 a consortium backed by the Chinese Government &#8211 are proposing to build 350 km of rail and deepwater port infrastructure at Oakajee as part of a $1.5bn investment.</p> <p>Rival miner Murchison Metals &#8211 backed by Toll Holdings, South Korea’s Posco and Japan’s Mitsubishi &#8211 is working on an engineering study for a similar plan.</p> <p>Midwest chief Bryan Oliver said an unfavourable letter this month from the state’s development minister, Eric Ripper, did not change the fact that the company’s state agreement was still applicable.</p> <p>&#8220Nothing has changed, we’ve had advice that this is a valid state agreement and in fact, the minister’s letter to us clearly indicates that it’s valid,&#8221 Mr Oliver told <em>Lloyd’s List DCN</em> .</p> <p>Mr Ripper, who is also the state’s treasurer and deputy premier, said he preferred to terminate the agreement.</p> <p>But Mr Oliver said Midwest had met its obligations under the agreement, and expected the State Government to do the same.</p> <p>&#8220You don’t terminate something that’s not in existence,&#8221 Mr Oliver said.</p> <p>The state agreement requires Midwest to carry out studies of its resources, plan a preferred route for the rail, present plans for port infrastructure and back it up with suitable financing and sales agreements.</p> <p>Mr Oliver said Midwest would complete its engineering and drilling in mid 2008.</p> <p>He said the company had until November to submit its final proposal, but noted there had been very little consultation from Mr Ripper about his plans.</p> <p>&#8220If the Government is thinking of making earlier decisions, then they will need to make it with the existence of our state agreement in mind,&#8221 Mr Oliver said.</p> <p>&#8220In the minister’s letter to us, he says he’s been advised [to terminate the agreement&#93, but doesn’t explain what the basis of that is or what the areas of concern are.&#8221</p> <br />