Mitsubishi Corp. and Murchison Metals Ltd. may have to pay 32 percent more to build the Oakajee port and rail project and the Jack Hills iron ore mine in Australia, hampering Murchison from funding its share.
Oakajee Port & Rail Pty, a venture between Japan’s Mitsubishi Corp. and Australia’s Murchison Metals Ltd. , delayed the start of its A$4 billion ($4.02 billion) iron ore rail and port project in Western Australia.
Murchison Metals Ltd., an iron ore developer, fell to almost a six-year low in Sydney trading after failing to secure funding for a A$5.94 billion ($5.8 billion) iron ore infrastructure project in Western Australia.
Murchison Metals Ltd. , developing an iron ore project in Australia with Mitsubishi Corp. , said the venture signed non-binding letters of intent to sell 55 million tons a year of the steelmaking material.
Japan’s Mitsubishi Corp. and Australia’s Murchison Metals Ltd. , building a A$4 billion ($3.83 billion) iron ore rail and port development, need a better plan for the project’s ownership to facilitate its funding, Western Australian Premier Colin Barnett said.
Mitsubishi Corp. will pay partner Murchison Metals Ltd. A$325 million ($315 million) in cash for stakes in two ventures, giving Japan’s largest trader control of an iron ore mine and a rail and port project in Australia.