Big firms at bay as port project stalls
Resource companies are being urged to hold on for a massive rail and port project in Western Australia, after work was stopped on the $6 billion development.
Japanese firm Mitsubishi has suspended its efforts to build the massive Oakajee Rail and Port project in June this year, saying weakening economic conditions in both countries and failure to find more backers have meant it cannot go ahead.
Now the Federal Resources Minister Gary Gray has said previous funding would still be available if the project is put back on its feet, telling producers in the area: “You just got to hang in there, the iron ore price will remain robust.”
“All of the forward projections are seeing iron ore prices at well over $100, so we believe the market will remain robust, we believe that our producers have a great place to play and we believe in the project in the mid-west and we believe in Oakajee,” Mr Gray said.
“Most projects go through periods when they are not really going to make it through the various economic filters and I'm looking at one which is the Browse project... they do generate a substantial economic benefit but sometimes the final investment doesn't quite match the first ideas of people earlier on.”