Australia's Yilgarn Infrastructure Ltd.'s bid for the Oakajee port and rail project in Western Australia has been bolstered by a partnership with five Chinese state-owned companies. Yilgarn, an unlisted public company, largely provides port and railway services to mining companies.
A joint venture agreement to compete for the $3 billion project has been signed between Yilgarn, China Railway Materials Commercial Corporation (CRM), Sinosteel, China Railway Engineering Corporation, China Communications Construction Company and Angang Steel.
Reports say that the five Chinese state-owned companies will hold a 50% stake in the joint venture while Yilgarn will hold the rest.
“This equity agreement, together with the debt financing commitment secured from China's EXIM Bank, puts Yilgarn on the best possible financial footing as we progress the Oakajee port and rail project,” said Yilgarn chairman John Saunders.
Amid scores of iron-ore mines opening up in the iron-ore rich midwest of Western Australia, Yilgarn is competing with Murchison Metals and WestNet Rail to build the line to connect the planned Oakajee port north of Geraldton.
Reports say that development of the almost 9 billion tonnes of proved reserves of iron-ore in the midwest region has so far been impaired by the lack of transportation infrastructure such as a dedicated port.
The winning bid has been scheduled to commence construction by 2008 and the project is expected to be completed by 2011.
China is the world's largest iron-ore importer, buying 326.3 million tonnes of iron-ore last year, of which 38.85% came from Australia, making Australia the biggest exporter of iron-ore to China.
A joint venture agreement to compete for the $3 billion project has been signed between Yilgarn, China Railway Materials Commercial Corporation (CRM), Sinosteel, China Railway Engineering Corporation, China Communications Construction Company and Angang Steel.
Reports say that the five Chinese state-owned companies will hold a 50% stake in the joint venture while Yilgarn will hold the rest.
“This equity agreement, together with the debt financing commitment secured from China's EXIM Bank, puts Yilgarn on the best possible financial footing as we progress the Oakajee port and rail project,” said Yilgarn chairman John Saunders.
Amid scores of iron-ore mines opening up in the iron-ore rich midwest of Western Australia, Yilgarn is competing with Murchison Metals and WestNet Rail to build the line to connect the planned Oakajee port north of Geraldton.
Reports say that development of the almost 9 billion tonnes of proved reserves of iron-ore in the midwest region has so far been impaired by the lack of transportation infrastructure such as a dedicated port.
The winning bid has been scheduled to commence construction by 2008 and the project is expected to be completed by 2011.
China is the world's largest iron-ore importer, buying 326.3 million tonnes of iron-ore last year, of which 38.85% came from Australia, making Australia the biggest exporter of iron-ore to China.