Padbury Mining drops $6.5bn Oakajee iron ore port and rail project

1 May 2014 (Last Updated May 1st, 2014 18:30)

Australian mineral exploration firm Padbury Mining has shelved its plans to build a $6.5bn Oakajee port and rail project.

Australian mineral exploration firm Padbury Mining has shelved its plans to build a $6.5bn Oakajee port and rail project.

The company said in a statement that it has signed a deed of termination with Midwest Infrastructure, Alliance Super Holdings and Superkite in relation to the agreement.

The statement said: "Padbury will continue to actively explore all available opportunities to exploit its existing intellectual property with respect to the Oakajee project."

"Padbury will continue to actively explore all available opportunities to exploit its existing intellectual property with respect to the Oakajee project."

Earlier this month, the company said that it signed a deal with private Australian investors to secure funding for the project in three tranches, however, it has not revealed the investors at that time.

Padbury was ordered to carry out further documentation on the deal, as part of an investigation by the ASX and the Australian Securities and Investments Commission (ASIC).

If the deal had materialised, the Oakajee port would then enable the development of numerous iron ore projects and allow existing producers to increase their production capabilities to be able to export using cape size vessels up to 240,000t.

It would also offer other benefits, including up to two days shipping time savings from other ports to the south of the state.

Last year, Japanese firm Mitsubishi withdrew from the Oakajee port and rail network project citing weak iron ore prices and economic conditions.

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