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By Xin Dingding (China Daily)
Updated: 2007-08-18 09:43

Five State-owned companies signed a joint venture deal with Australia's Yilgarn Infrastructure Ltd in Beijing on Friday. They will bid for a contract to build a large iron ore port at Oakajee in the Mid West region of Western Australia.

The Mid West is rich in minerals, with at least 8.6 billion tons of iron ore in reserve.

"But the region is poor in the large-scale port and modern rail infrastructure needed to bring iron ore to the high-growth markets of China," said John Saunders, chairman of Perth-based Yilgarn Infrastructure.

The port will have an annual capacity of 100 million tons, and a rail network connecting the port to more than five new iron ore mines located inland. The port-rail project is expected to cost $2.5 billion.

Construction is expected to begin in mid-2008 and will be completed by 2011.

The five Chinese firms are: China Railway Materials Commercial Corp, China Railway Engineering Corp and China Communications Construction Co Ltd, which will be responsible for building the railway and port; and iron ore buyers Sinosteel Corp and Anshan Iron and Steel Group Corp.

The Export-Import Bank of China and China Development Bank have promised financial services for the project. The five Chinese companies will invest $2.5 billion to $3 billion in the project.

(China Daily 08/18/2007 page3)