Mitsubishi Development has this week taken full control of the Oakajee Port and Rail development, bringing much needed confidence and commitment to the languishing project.

Monday marked the final sign-off on Murchison Metals’ $325 million asset sale to Mitsubishi, who now takes 100 per cent of the $5.9 billion Oakajee project and $3.7 billion Jack Hills iron ore mine, which it previously shared in a 50/50 joint venture with Murchison.

Like Kingstream Steel before it, project developer Murchison was this week forced to step aside after failing to come up with the capital needed to see the project through.

Murchison managing director Greg Martin said the company would now seek a ruling from the Australian Taxation Office in relation to a cash return to its shareholders.

He said Murchison would also evaluate the possibility of investment opportunities in the resources sector.

“Murchison had a visionary proposal for the Mid West region, which ultimately proved beyond its capacity given market conditions. That vision is now left to others to realise,” he said in a statement released on Monday.

“Fortunately, we have been able to secure a cash value for our Mid West assets, which recognises the value built up in those assets over a number of years as noted in the independent expert’s report that was prepared for the transaction.”

Mr Martin said the majority of the available cash would be placed on deposit with investment-grade counterparties while processes were undertaken.

In a separate statement released on Monday, Oakajee Port and Rail chief executive John Langoulant said the acquisition of OPR and Crosslands confirmed Mitsubishi’s faith in the Mid West iron ore province and confirmed the company’s long-term commitment to the infrastructure project.

“The ownership restructure delivers greater project certainty and will underpin the completion of key tasks, required to see the project move into construction,” he said.

“Mitsubishi, one of the largest trading and investment companies in Japan, has indicated it will seek a strategically-aligned equity partner.

“Project schedule is largely dependent on the outcome of these negotiations.”

Mr Langoulant said more than $250 million had been spent on the project.

Crosslands Resources chief executive Andy Caruso said the acquisition would “reignite” confidence in Crosslands and OPR and attract investment.

“This is an important building block in the development of the Mid West as a truly world-scale iron ore province,” he said.

“Mitsubishi has a long history of involvement in the Australian resources sector.

“They have made it clear that they see the Mid West as a longterm strategic investment and are looking to bring onboard a suitably capitalised partner(s) or investor(s) who shares their vision for the future.”

Mr Caruso said project planning and approvals for Crosslands’ flagship Jack Hills Expansion Project, located east of Geraldton, were well advanced.