Iron ore prices would not support Oakajee port – Analyst
Friday, 24 February 2012 | 12:34
According to an industry analyst, iron ore prices will remain stable this year, but they won't give enough security to build a deepwater port at Oakajee in Western Australia.
Mr Gavin Wendt from MineLife said that iron ore prices should remain at about AUD 140 a tonne. However global uncertainty around investing will make it difficult for new high capital cost projects like the $6 billion Oakajee port to get off the ground.
He said that "If you've got a smaller scale project that can be up and running reasonably quickly, I think that's certainly to your advantage. It's very difficult to raise funding for projects particularly since the global financial crisis. I think it's all falling into play for BHP and Rio, they're the only ones that are really guaranteed in terms of ramping up production, effectively they're going to maintain their position of market dominance."
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