WA Premier Colin Barnett has confirmed an extension to the deadline for a final decision on the future of the Oakajee Port and Rail project (OPR), after considerable deliberation.

 

Barnett says the extension was granted following agreement from OPR proponents to abide by new “rigorous” requirements for project reporting and finalisation. 


“The extension is the best way to secure infrastructure vital for the future both of the Mid-West and Western Australia,” the Premier says.
 

“There are mines already into construction in the Mid-West and they require a railway to transport the ore and a port to export it from so the time is getting short.”

 

“I have always said that the Oakajee project is complex; not least because of the number of players and the scale of the infrastructure.”

 

The original deadline set under the Oakajee State Development Agreement (SDA) signed in March 2009, was for OPR key project implementation agreements to be signed by March 31, 2011. 


The date has now been extended to December 31, 2011, by which date OPR joint venture partners Mitsubishi Development Corporation and Murchison Metals are expected to have finalised all feasibility studies and made a commitment to proceed.

 

“The partners must also have demonstrated that they have contracts in place with foundation customers and reached agreement with the State Government regarding the construction of the project and operation of the infrastructure,” Barnett says.

 

Barnett says under the revised timetable, construction is now expected to commence in the first quarter of 2012 and port operations are expected to commence in 2015.
 
“There will be no further extension to the deadline unless there are exceptional circumstances,” he says.

 
“This is a massive undertaking and important progress has already been made in developing infrastructure that will help create a new iron ore province and major new investment in Western Australia.”
 

“So far the proponents have spent more than $300million on detailed technical and financial studies, design work and communication with potential port users, local industries and Mid-West communities.
 

“For our part, the State Government has committed $678 million in Federal and State funding for common user facilities at the port which includes the channel, breakwater, turning basin, navigational aids, provision for tug and pilot boat pens, port administration offices and roads and utilities. These facilities will be made available to port users on a commercial basis.