Thu,August 11, 2011
By Minsi Chung
With several key iron ore projects due to come online in the north west of Western Australia, competition for existing port and rail infrastructure is intensifying.
The proposed $4 billion open access port at Anketell Point about 30 km east of Karratha is expected to be one of the solutions, with the port set to ship 350 million tonnes of product a year.
The Environmental Protection Authority has recently given Aquila Resources approval for the $6 billion West Pilbara Iron Ore Project south of Pannawonica, which includes the construction of a 285 km rail line connecting the mine to the Anketell Point Port.
Companies like Aquila are now hoping the next step will be the environmental approval for the port itself.
The Aquila Executive Chairman Tony Poli says Anketell is of paramount importance - not just to the West Pilbara Iron Ore Project - but also to the state.
"With the fullness of time there will be also other industrial uses, agricultural uses going through Anketell Point, so it is an extremely important asset to the state, putting aside the significant royalties the state will win from Aquila and other companies exporting iron ore to China."
He says the open access port is also important for other companies, especially the smaller iron ore players.
"It is very important to the West Pilbara; there is no other open access port in the West Pilbara," he said.
"You have Rio Tinto's Cape Lambert [port] which is only 10 km away from the proposed Anketell Port but unfortunately it is not open to third parties.
"It is a significant project for companies like Atlas Iron and Iron Ore Holdings, who have made it public they would also like to use Anketell and other companies like Flinders, who are very dependent on the on the development of Anketell, it must be high on their list of priorities.
"Indeed it could service one day FMG, Rio Tinto and BHP."
Fortescue Metals Group has also flagged its interest in the port at Anketell.
While FMG currently exports out of Port Hedland Port, a company spokeswoman says Anketell is crucial to its plans to expand its capacity to 155 million tonnes a year.
"The timely development of a new Pilbara port is vital for the future expansion of the Pilbara resources industry," she said.
"Fortescue's priority in the development of the port is that it is built with future expansion in mind."
Anketell is expected to open up new growth opportunities in the region and will be important to ease the pressure off other ports, which are approaching capacity.
The Port Hedland Port, which is the main multi-user port in the region, reported record figures last financial year, shipping more than 199 million tonnes of bulk exports.
The 2010-2011 figure is up more than 20 billion tonnes on the previous year and is a jump of 80 per cent on five years ago.
While Port Hedland is expanding to take its capacity to more than 400 million tonnes in the coming years, it is currently fully allocated.
Who will lead?
Anketell is funded solely by the private sector and once built, will be managed by the Dampier Port Authority.
Aquila Resources is hoping to become the lead proponent as part of the API joint venture with US investment group AMCI, but will have to fight FMG for the rights to be the lead company.
The State Government is expected to decide by the end of the year whether it is Aquila, FMG or even a third party, who will take control of building the port.
And the government will be keen to avoid the problems which have plagued another of the state's key port developments, Oakajee, which has been delayed over funding concerns.
Aquila's Tony Poli believes Anketell will go ahead.
"I think the significant advantage we have is that the feasibility study we have completed on the project clearly shows that our project alone will support the development of the port," he said.
In a report by Bell Potter analysts Fleur Close and David George, Aquila is marked as the lead contender because its West Pilbara Iron Ore Project is the driver of the port project and the approvals process, but it needs to show it can come up with the money.
"From the government's point of view, it will be looking to appoint someone it can count on to deliver," the report stated.
"The other port project the government has supported is the Oakajee Port project which has failed to deliver on time.
"From that perspective, FMG is well credentialed".
And FMG says it is confident it has the sufficient resources to underpin the Anketell Point project.
But Mr Poli also appears optimistic and says Aquila is looking forward to demonstrating it has the financial capabilities to fund the infrastructure of the port.
"We hope to have some positive announcements in terms of funding in the September quarter," he said.
"We are in discussions [with] the China Development Bank as a result of a MOU with Baosteel."
Aquila needs the port by 2014 when it expects to start producing from the West Pilbara Iron Ore Project.
FMG also expects to reach its 155Mtpa production target in 2014.
Meanwhile, the Environmental Protection Agency is due to release its environmental assessment for Anketell by the end of this year, with construction scheduled for the second quarter of next year.
The West Pilbara Iron Ore Project is now waiting for the final greenlight from the Environment Minister Bill Marmion.
(sourced ABC.net)
By Minsi Chung
With several key iron ore projects due to come online in the north west of Western Australia, competition for existing port and rail infrastructure is intensifying.
The proposed $4 billion open access port at Anketell Point about 30 km east of Karratha is expected to be one of the solutions, with the port set to ship 350 million tonnes of product a year.
The Environmental Protection Authority has recently given Aquila Resources approval for the $6 billion West Pilbara Iron Ore Project south of Pannawonica, which includes the construction of a 285 km rail line connecting the mine to the Anketell Point Port.
Companies like Aquila are now hoping the next step will be the environmental approval for the port itself.
The Aquila Executive Chairman Tony Poli says Anketell is of paramount importance - not just to the West Pilbara Iron Ore Project - but also to the state.
"With the fullness of time there will be also other industrial uses, agricultural uses going through Anketell Point, so it is an extremely important asset to the state, putting aside the significant royalties the state will win from Aquila and other companies exporting iron ore to China."
He says the open access port is also important for other companies, especially the smaller iron ore players.
"It is very important to the West Pilbara; there is no other open access port in the West Pilbara," he said.
"You have Rio Tinto's Cape Lambert [port] which is only 10 km away from the proposed Anketell Port but unfortunately it is not open to third parties.
"It is a significant project for companies like Atlas Iron and Iron Ore Holdings, who have made it public they would also like to use Anketell and other companies like Flinders, who are very dependent on the on the development of Anketell, it must be high on their list of priorities.
"Indeed it could service one day FMG, Rio Tinto and BHP."
Fortescue Metals Group has also flagged its interest in the port at Anketell.
While FMG currently exports out of Port Hedland Port, a company spokeswoman says Anketell is crucial to its plans to expand its capacity to 155 million tonnes a year.
"The timely development of a new Pilbara port is vital for the future expansion of the Pilbara resources industry," she said.
"Fortescue's priority in the development of the port is that it is built with future expansion in mind."
Anketell is expected to open up new growth opportunities in the region and will be important to ease the pressure off other ports, which are approaching capacity.
The Port Hedland Port, which is the main multi-user port in the region, reported record figures last financial year, shipping more than 199 million tonnes of bulk exports.
The 2010-2011 figure is up more than 20 billion tonnes on the previous year and is a jump of 80 per cent on five years ago.
While Port Hedland is expanding to take its capacity to more than 400 million tonnes in the coming years, it is currently fully allocated.
Who will lead?
Anketell is funded solely by the private sector and once built, will be managed by the Dampier Port Authority.
Aquila Resources is hoping to become the lead proponent as part of the API joint venture with US investment group AMCI, but will have to fight FMG for the rights to be the lead company.
The State Government is expected to decide by the end of the year whether it is Aquila, FMG or even a third party, who will take control of building the port.
And the government will be keen to avoid the problems which have plagued another of the state's key port developments, Oakajee, which has been delayed over funding concerns.
Aquila's Tony Poli believes Anketell will go ahead.
"I think the significant advantage we have is that the feasibility study we have completed on the project clearly shows that our project alone will support the development of the port," he said.
In a report by Bell Potter analysts Fleur Close and David George, Aquila is marked as the lead contender because its West Pilbara Iron Ore Project is the driver of the port project and the approvals process, but it needs to show it can come up with the money.
"From the government's point of view, it will be looking to appoint someone it can count on to deliver," the report stated.
"The other port project the government has supported is the Oakajee Port project which has failed to deliver on time.
"From that perspective, FMG is well credentialed".
And FMG says it is confident it has the sufficient resources to underpin the Anketell Point project.
But Mr Poli also appears optimistic and says Aquila is looking forward to demonstrating it has the financial capabilities to fund the infrastructure of the port.
"We hope to have some positive announcements in terms of funding in the September quarter," he said.
"We are in discussions [with] the China Development Bank as a result of a MOU with Baosteel."
Aquila needs the port by 2014 when it expects to start producing from the West Pilbara Iron Ore Project.
FMG also expects to reach its 155Mtpa production target in 2014.
Meanwhile, the Environmental Protection Agency is due to release its environmental assessment for Anketell by the end of this year, with construction scheduled for the second quarter of next year.
The West Pilbara Iron Ore Project is now waiting for the final greenlight from the Environment Minister Bill Marmion.
(sourced ABC.net)
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