Procurement Professional is the official publication of CIPS Australasia

OPR inks deals with Oakajee customers

26 Aug 2010

Source: Sydney Morning Herald

Oakajee Port and Rail (OPR) says it has inked agreements with three foundation customers for a new iron ore export port being developed in Western Australia's midwest region.

OPR is an equal joint venture between iron ore miner Murchison Metals Ltd and Japan's Mitsubishi Corporation. The new deepwater port at Oakajee, north of Geraldton, will include an extensive rail component to link the region's iron ore mines to the export facility.

It is expected to cost more than $3 billion to develop and be ready for first shipments in 2014. "The first shipment of Weld Range iron ore scheduled for 2014, pending the development of the Oakajee infrastructure", Sinosteel Midwest managing director Tony Cheng said.

"This timeline is critical for our investors and for the development of the burgeoning midwest iron ore industry.
"We are keen to progress our supply chain negotiations with OPR as a matter of priority."

OPR chief executive John Langoulant said finalising supply chain agreements with the potential foundation customers was the top priority for the remainder of this year.

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