A Chinese state-owned entity will seek to revive a $9.7 billion mining rail and port project in Western Australia, in a move that could unlock the nation’s next iron ore export province.
Sinosteel has acquired Japanese giant Mitsubishi’s interests in the long-stalled Oakajee Port and Rail project, in a deal that comes in the strongest year for iron ore prices since 2014.
The acquisition effectively resolves a dispute over port tariffs that was the major wrecker of attempts to develop Oakajee during the heady peaks of the iron ore boom in 2011, and when combined with Sinosteel’s existing assets nearby, make the Chinese company the dominant force in the mid-west region of WA.
Attempts to develop Oakajee and unlock an iron ore province to rival the Pilbara region have been under way for 46 years, but it rose to national prominence around 2011 after becoming a pet project of Colin Barnett’s Liberal state government.
Sinosteel’s $2 billion Weld Range iron ore project was set to be a major customer of Oakajee, but cost blowouts on the port and rail forced up the proposed port tariffs, prompting Sinosteel to halt work on Weld Range in June 2011.
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