Oakajee hopeful 'ahead of game'
Geraldton’s Iron Ore Alliance and the Chamber of Minerals and Energy have welcomed Friday’s announcement that Padbury Mining has secured $6 billion funding to construct port and rail for the Oakajee project.
Meanwhile, Mitsubishi, which decided last year to put on hold the possibility of funding the Oakajee Port and Rail proposal, has confirmed its position is unchanged and it does not want to be the only investor.
This pleases University of Western Australia Winthrop Professor and business school associate dean Richard Heaney, who said competing proposals for the infrastructure would be a disaster, slowing down the process of kick-starting the project.
“This is an important project for the development of the State and will provide an increase in employment in WA for many years to come with construction and maintenance of the infrastructure,” he said.
Professor Heaney said the credibility of the Padbury announcement was highlighted in references to discussions with Korean investors in its annual reports.
“The directors said keen interest was shown by major Korean pension funds and government investment agencies with over $400 billion in assets under management,” he said.
“They could provide that $6 billion for Oakajee in a snap.”
Chief executive officer of the Geraldton Iron Ore Alliance, Rob Jefferies, said the Padbury announcement was the first to include references to secured funding.
“There are other parties looking at the Oakajee opportunity but there is no party that is saying it has the full finances in place, so this puts Padbury ahead of the game,” he said.
“They still have a significant number of steps to take, including negotiations with miners and arrangements with the State to be able to move forward.
“Having said that, this is a welcome development and the industry is more than happy to engage with Padbury and work ahead.”
Chief executive of the Chamber of Minerals and Energy, Reg Howard-Smith, said Padbury’s funding package had vital economic importance for regional, State and national economies.
“This is an exciting step towards realising the multi-billion dollar prospect currently lying dormant in the Mid West,” he said.
“With State royalties funding hospitals, schools and services, Padbury’s announcement unlocks potential for the region and the State.
“Complex infrastructure projects do not come along without significant challenge, so this outcome is great news for WA.”
Mr Howard-Smith said Padbury’s pursuit of the Oakajee project represented a substantial vote of confidence in the future of the Mid West as a major resources province.
