Oakajee Port & Rail Pty, a venture of Murchison Metals Ltd and Mitsubishi Corp, said its planned port in Western Australia for iron-ore exports may cost 17% more after adding on the cost of trains and wagons to the project, writes Bloomberg.
The project may cost between A$3bn ($2.85bn) and A$3.5bn, Oakajee Port Chief Executive Officer Christopher Eves told the news agency. Oakajee Port & Rail won the bid for the port and railroad yesterday, beating a proposal backed by iron-ore producer Midwest Corp and its Chinese partners.
The port will boost shipments of iron ore from Australia, the world's largest exporter, as global prices for the steelmaking material rise to records.
The port will be able to ship 35 million tons of iron ore a year and construction may start in 2010, Eves told Bloomberg.
By staff writer
