Yilgarn ties knot with Chinese and gets Hu's blessing

Yilgarn ties knot with Chinese and gets Hu’s blessing

Staff WriterSeptember 5, 2007, 12:00 amSeptember 5, 2007

It has been a bumper week for Yilgarn Infrastructure, with five Chinese backers signing investment agreements yesterday (Tuesday, September 4) and a positive outcome for its Karara magnetite project revealed on Monday. The successes prompted Yilgarn chairman John Saunders to say the company had the support of Chinese president Hu Jintao for the development, construction and operation of the $3bn Oakajee port and infrastructure project. &#8220With the support of president Hu Jintao, Yilgarn is saying, `We will do this project’," Dr Saunders said, AAP reported. &#8220There is no question that this will start construction at the end of next year … come to financial close at the end of this year, and with the cooperation of Chinese and Australian partners, it will happen.&#8221 The ceremony, witnessed by senior members of the China and WA governments, finalised a $750m equity deal between Yilgarn and Sinosteel Corporation, China Railway Engineering Corp, China Communication Construction Co, China Railway Materials Commercial Corp and Anshan Iron and Steel Group Corp. Dr Saunders said the agreement, plus a debt finance commitment secured from China’s EXIM Bank, put his soon-to-be-listed company on the best possible financial footing. Trying to bring Murchison into the fold was the next step, Dr Saunders said. On Monday, Dr Saunders had said the successful outcome of their bankable feasibility study into the Karara magnetite project was significant for the joint venture companies, Gindalbie Metals and Anshan, and the growth of the iron ore industry in WA’s midwest region. &#8220They also are significant for Yilgarn Infrastructure and the Oakajee Port and Rail Project, with Gindalbie flagging its intention to use rail to transport the Karara magnetite as part of its expansion plans,&#8221 Dr Saunders said. &#8220With Gindalbie’s partner Ansteel now confirmed as a foundation investor and customer of Yilgarn’s port and rail infrastructure project and all the necessary engineering studies and financial modelling done on our Mid West southern rail corridor, we are well-placed to move forward.&#8221 Dr Saunders said Yilgarn anticipated cooperating with WestNet Rail over the development of the southern rail corridor. &#8220We look forward to working with WestNet on the utilisation of existing alignments &#8211 where possible &#8211 for the rail,&#8221 he said.