Sinosteel Group deploys iron ore transportation project in Western Australian
2019-10-22 17:51:51 [Print]
Sinosteel recently acquired Mitsubishi's stake in the mining rail and port project in Oakajee, Western Australia, which is worth AUD9.7 billion.
Sinosteel' AUD2 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 suspend work on Weld Range in June 2011.
In November 2011, Mitsubishi acquired a 50% stake in the Oakajee project for AUD325 million. However, iron ore prices had begun their long retreat by that time, so the construction of the Oakajee project has been hampered by various factors.
The deal between Sinosteel and Mitsubishi means Sinosteel will control both the port tariffs and the Weld Range mine, as well as other iron ore assets in the region, if Oakajee's port and rail assets are ever built.
Sinosteel' AUD2 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 suspend work on Weld Range in June 2011.
In November 2011, Mitsubishi acquired a 50% stake in the Oakajee project for AUD325 million. However, iron ore prices had begun their long retreat by that time, so the construction of the Oakajee project has been hampered by various factors.
The deal between Sinosteel and Mitsubishi means Sinosteel will control both the port tariffs and the Weld Range mine, as well as other iron ore assets in the region, if Oakajee's port and rail assets are ever built.
