Murchison Metals Ltd

Murchison Metals Limited ('Murchison') is an Australian ASX listed company. Murchison is included in the S&P/ASX 200 Index.

The Company is aiming to create shareholder wealth through mining and exporting high quality iron ore to world markets.

Murchison is a 50% shareholder in Crosslands Resources Ltd ('Crosslands') which is the owner of the Jack Hills iron ore project located in the mid-west region of Western Australia. The remaining 50% of Crosslands is held by Mitsubishi Development Pty Ltd ('Mitsubishi'), a subsidiary of Mitsubishi Corporation, Japan's largest general trading company.

In addition, Murchison has a 50% economic interest in a new independent infrastructure business, Oakajee Port and Rail (OPR). OPR has the right to construct new port and rail infrastructure to service miners (including Crosslands) and other potential customers in the mid-west region of WA. The remaining 50% economic interest in OPR is held by Mitsubishi.

Murchison has a strong, experienced and energetic hands-on management team which will continue to support both Crosslands and OPR to become, respectively, a leading iron ore producer and a leading infrastructure business.

Crosslands Resources Ltd

Crosslands is owns and operates the Jack Hills iron ore project ('Jack Hills Project'), located approximately 380 kilometres north-east of Geraldton.

Stage 1 operations utilise contract mining, crushing and screening.  Iron ore is transported to Geraldton by contract road haulage to ore storage and transfer facilities at the Port of Geraldton, ahead of shipment to customers located predominantly in China.

Crosslands is targeting a substantial expansion of annual production at Jack Hills. Feasibility studies for the expansion are well advanced and mine optimisation studies indicate the potential for a world class project.

Murchison is confident that the combination of the stabilised mineral resources, Crosslands'  proven development expertise and the financial strength and expertise of Mitsubishi represent an outstanding opportunity to drive shareholder value through the expansion of the mid-west mining operations.

Oakajee Port and Rail Pty Ltd

Oakajee Port and Rail was established in September 2007 to deliver a world class multi-user deepwater port at Oakajee, north of Geraldton and an associated open access railway to service a number of mid-west iron ore projects currently under development including the Jack Hills project owned by Crosslands.

In July 2008, the State Government announced OPR as the preferred proponent for the development of the new Oakajee deepwater port on the basis of a detailed bid deemed to be superior to a competing bid across all criteria.

The newly elected Premier Colin Barnett announced in October 2008 that the State Government would contribute $339 million towards the development of the multi-user port and would seek a matching commitment from the Federal Government. 

Following detailed negotiations, a State Development Agreement (SDA) was signed between the WA Government, OPR, Murchison and Mitsubishi in March 2009.  The SDA represents a key milestone in the development of the project and marks an important step in cementing Murchison's role as the key strategic player in the mid-west region of Western Australia.

In the 2009-2010 Federal Budget announced in May, the Federal Government also confirmed a commitment of $339 million towards the Oakajee Port common user infrastructure, matching the State Government's funding.

Following the signing of the SDA, discussions have continued with regional miners with a view to determining their tonnage and timing requirements for the integrated port and rail system.  This process is designed to guide planning of the most efficient and coordinated supply chain for the region.

Murchison expects to generate significant direct benefits as OPR's business develops and additional customers sign up to use OPR's port and rail services.