MMX - Murchison Metals

[ratquahe]

Widely assumed that the project will be given the green light, which is critical for Jack Hills project. Assumed that Mitsubishi will cough out the cash via debt. But any clue MMX have to contribute some $$$ if Mitsubishi for some reason is unable to help fund the project as agreed in 2007?

 

[nunthewiser]

"There is mounting speculation the capital cost of the Oakajee port and rail project has blown out to as much as $6 billion, potentially crippling attempts by the embattled Murchison Metals to get the contentious infrastructure development off the ground.

Already struggling to meet a WA Government timetable to conclude a State Development Agreement for Oakajee, it is understood design and scope changes have sparked a significant increase in the capital cost for Murchison subsidiary Oakajee Port & Rail.

OPR's last disclosed budget was $4.3 billion, with the WA and Federal governments pledging to contribute up to $800 million towards its development.

Murchison is expected to address the Oakajee issue today when it responds to a WA Government offer of an extension of time to complete the State Development Agreement.

Under the original government-assigned right, Murchison and OPR had until the start of next month to complete the agreement.

However, Murchison said late last year it was running three to six months behind schedule and therefore relying on Government support to maintain its exclusive Oakajee development mandate.

Premier Colin Barnett, who has expressed his frustration at the development delays for Oakajee, a project he has long championed, confirmed five weeks ago he had offered Murchison an extension with undisclosed "exacting conditions".

It is understood Mr Barnett is willing to give Murchison until the end of the year to complete the State Development Agreement if the onerous conditions are met.

Although the Premier has refused to divulge the conditions, his publicly expressed frustration with Murchison has prompted some in the mining industry to suggest the conditions may be too onerous for Murchison to achieve, and that Murchison would therefore have no choice but to stick to the original April timetable and try to salvage the Oakajee exclusivity.

Murchison last night placed its shares in a trading halt at $1.38, pending "an announcement concerning the Government's response to the company's request for an extension to the State Development Agreement . . . for the Oakajee infrastructure project".

Murchison further said it expected to make an announcement by this afternoon, when its senior management will be on their way to New York as part of a North American investor roadshow.

A Murchison spokesman last night refused to discuss the extension. Adding to Murchison's woes is its insistence that OPR relies on the development of the Jack Hills mine, which is struggling to prove its financial viability. Like OPR, Jack Hills is half-owned by Murchison and Mitsubishi Development.

Despite boasting a three-billion tonne resource, Jack Hills' grade is low sparking concerns a capital cost of up to $6 billion could render the development uneconomic.

There is industry talk that Jack Hills' senior management had suggested a restructured development plan, mining only the direct-shipping hematite ores - a fraction of the overall resource - to guarantee a small but viable operation.

Murchison's woes have created friction with Chinese-controlled iron ore projects in the Mid West, which are being lined up as Oakajee foundation customers.

The Chinese faction, led by Gindalbie Metals and Sinosteel Midwest, is desperate for Oakajee to be built as quickly as possible."

http://au.news.yahoo.com/thewest/a/-/wa/8936256/heat-on-murchison-over-oakajee-blowout-fear/

I visit the oakagee site and surrounds on a weekly/fortnightlymonthly basis for fishing and playtime...... NOTHING has been done yet , no access roads no track upgrades .....nothin ....... lol not even an EPA approval yet either....


anyhoo....

 

[trainspotter]

http://www.wabusinessnews.com.au/en-story/1/87236/Barnett-flags-Oakajee-ownership-changes

Barnett flags Oakajee ownership changes

Resources: 2-March-11 by Dan Wilkie


Premier Colin Barnett has thrown the door open for a change in the ownership structure of the Oakajee Port & Rail development, after granting its proponents an extension until the end of the year to finalise their plans.

Conditions attached to the extension require the project proponents, Murchison Metals and Japan's Mitsubishi Corporation, to finalise all technical and financial studies, to enter into contracts with iron ore mines for the transport of the ore and to complete the approvals process by December 31.

The port is considered vital for the development of several mines in the Midwest, including Gindalbie's Karara, Sinosteel's Koolanooka and Murchison and Crossland Resources' Jack Hills.

The premier said he was confident the project would go ahead, but there may be some changes in the ownership structure of Oakajee Port & Rail in the near future.

"Oakajee Port & Rail has two partners, Mitsubishi, a world scale company and no one questions their capacity," Mr Barnett told reporters today.

"Murchison is a smaller Australian mining company which is also looking at contributing to its share of the infrastructure and also developing the Jack Hills mine which is in itself a very large project, so that stretches their capacity.

"I expect you might see some major balance sheet companies increase their participation either through Murchison or directly into OPR.

"A project that's going to run into perhaps $5 billion needs companies of the scale of the Mitsubishis of this world."

Mr Barnett said OPR would remain a major player in the project, but there was a distinct possibility for major Chinese investment in the port, considering most of the demand for the iron ore shipped from Oakajee stemmed from China.

"The Chinese companies are the buyers; I think you'll see some Chinese investment in the project

"The involvement of a few major players either directly or maybe through Murchison will add strength of the project.

"Bear in mind, if you look at it, you've got Sinosteel, a top 500 world company as one of the investors in the mine, similarly you've got Anchan iron and steel, one of the world's biggest steel producers involved in Gindalbie.

"So the Chinese are already there, they may also come formally into OPR in terms of the infrastructure.

The government's expectation is for construction to start in the first quarter of 2012 and the port to be operational by 2015.

"I just want to see the project get under way, there is no doubt the basic economics are sound," Mr Barnett said.

"If you take into account Gindalbie's Karara mine, they are already well into construction.

"Sinosteel also wants to go into construction, Jack Hills is probably a little bit behind, but it's a huge resource.

"The customers, mainly Chinese steel mills, are lining up to buy the iron ore, so the economics are there, the price is high, everyone wants to get on with it.

"I hope over these next few months all the final details will be resolved.

"This extension requires a commitment to proceed, there may even be some preliminary site works getting under way towards the end of this year."

Oakajee Port and Rail chief executive John Langoulant said the premier's decision to grant the extension removed any uncertainty that existed regarding OPR's authority to finalise the project arrangements.

"OPR appreciates the premier's recognition of the complexity of the project's development and his confirmation of reasonable timeframes for the development," Mr Langoulant said.


Hahahahhahah aaaah ah aha ha ..... I agree with Nun. Was up there on Friday. Nuffin. Not even a sign.

 

[trainspotter]

The Environmental Protection Authority has granted approvals for the construction of a new port and rail project in Geraldton.

Oakajee Port and Rail wants to build a 45 million tonne per annum iron ore export facility at the site.

The project will also involve a 570 km railway and associated infrastructure from the Jack Hills mine.

EPA Chairman Paul Vogel says the chance of dust spreading outside the port industrial area is low.

Mr Vogel also says any discharge from the port is unlikely to adversely affect water quality.

Japanese consortium Oakajee Port and Rail is confident the infrastructure project will be up and running by 2015.

http://www.abc.net.au:80/news/stories/2011/03/14/3163592.htm

Ooooooooooooopssssssss ....... might have to eat my hat now ??

 

[brty]

Don't you just love a politician's ability to put their foot in it...

Oakajee Port & Rail has two partners, Mitsubishi, a world scale company and no one questions their capacity," Mr Barnett told reporters today.

I think that the directors of Mitsubishi may have something else on their minds for quite a while. A fair bit of money will be needed back home.

brty

 

[kingkev]

SP heading in the wrong direction again. Does this have anything to do with Misubishi and the japanese consortium re-thinking their overseas costs?

 

[Mikael9986]

SP heading in the wrong direction again. Does this have anything to do with Misubishi and the japanese consortium re-thinking their overseas costs?

I reckon is the tsunami in Japan affecting the market sentiment on the SP.

 

[nunthewiser]

I reckon is the tsunami in Japan affecting the market sentiment on the SP.

Maybe somethin to do with this

Last minute submissions to Oakajee’s environmental approval could further delay the $4.5 billion project.

Two public submissions were made as part of Oakajee’s environmental approval process.

The two separate submissions were both lodged on Monday, the last day of the two-week public appeal period.

In mid March the Environmental Protection Authority released two separate reports on Oakajee’s proposal to construct and operate an iron ore port and to build and operate rail infrastructure.

WA appeals convenor Anthony Sutton said submissions had been made in response to both reports.

“We had an appeal against the rail component and against the terrestrial port,” he said.

“We are seeking the EPA’s comments on those appeals then we will make a recommendation to the Minister for Environment over whether the submissions will be upheld or dismissed.”

The Office of the Appeals Convenor is expected to make its recommendations to WA Environment Minister Bill Marmion by the end of April.

Minister Marmion would then consult other state ministers about the proposal.

If no public submissions were made, the Minister would have gone straight into the consultation period.

Mr Sutton said it was too soon to speculate on the outcome or to reveal the details of the public submissions.

http://au.news.yahoo.com/thewest/re...ews/9117866/11th-hour-moves-on-port-approval/

 

[vincent191]

MMX

Looks like the Chinese at Sino Midwest Corporation (SMC) are behaving like spoiled brats. They are spitting the dummy because they can't get a bit of the Oakjee action.

In my opinion MMX can't handle both the Oakjee and Jack Hill projects at once, I think they will farm out part of Oakjee to Queensland rail.

SMC had always wanted part of Oakjee and seeing part of it going to Queensland rail instead of them they are throwing a tantrum and threaten to spoil the party by stopping work in the Weld ranges.

I am calling SMC bluff. Firstly, China needs iron ore and secondly they paid 2 billion dollars for the Weld range deposits, you think they will just do a dummy spit and walk away ?? No likely.

SMC is a major shareholder in MMX, maybe they are trying to shake the tree and force down the share price of MMX and attempt another takeover bid for MMX and get into Oakajee via the back door. Just a theory.

 

[kingkev]

I share thye same thoughts

Good to get a buy order in now below the GFC lows of 48c

Takeover target...........possible

 

[vincent191]

It hurts, I bought in on an average price of $1.60. Instead of a profit I am now bleeding. I suspect when trading resumes I will haemorrhage. In hindsight MMX had made many big mistakes, it should have known that it cannot afford to develop both Okajee and Jack Hills at the same time.

MMX heavily publicised that Mitsuibishi is responsible to raise the finance for them but I missed the fact can MMX afford to service & repay the billions that it will need to borrow.

I am sure if Mitsubishi stands behind, MMX's credit rating and it's ability to borrow is not a major problem but MMX's repayment capability is certainly a big issue. MMX does not have a proven earnings track record to service such a big loan.

MMX's management should have known or thought about this very early on that they are biting off more than they can chew. It is very obvious for MMX to be develop Jack Hill & OPR they will need an equity injection. A market capitalisation of approximately $500 million is certainly NOT enough.

MMX should have thought about downsizing their involvement in OPR, sold off half for cash and done a capital raising when their shares peaked at >$3. Now it is too little, too late. A capital raising at the current low share price to fund Jack Hill will dilute existing shareholders who cannot afford to take part BIG TIME.

There is pressure on the CEO Paul K to resign for his total incompentence. I hope they will divest OPR and get back a few hundred million and get on with Jack Hill, MMX is an iron ore miner not an infrastructure provider, leave that to Queensland Rail.




.

 

[tech/a]

How and why on earth would you allow a trade to remain open from profit to loss of 60 or more %

 

[Boggo]

I suspect when trading resumes I will haemorrhage. In hindsight MMX had made many big mistakes, it should have known that it cannot afford to develop both Okajee and Jack Hills at the same time.

vincent, I sympathise with your dilemma, I have been there and done it many moons ago (AED stop set too wide and then account frozen due broker getting taken out with Opes Prime collapse). I hope you come out of it ok and then learn from it.

By buying into a stock where the overall trend is against you is risky, not having an exit strategy means you bear the brunt of their mistake with your mistake.

Unless you are short you are not going to make money from a falling stock price, the fact that the trend is down means something is amiss.
Even if you were short the current scenario may not be ideal.

Cheers.

 

[vincent191]

I bought in at 60 cents and sold at an average of $2.60, so when it dropped to $1.60 I bought it all back. I am still ahead but instead of cavair and champagne it look like it will be coca cola and peanuts.

 

[kingkev]

hang in there mate

posssibility of buying in again at around 60c

 

[corbieoo]

MMX Murchison Metals Is there any hope?

I was wondering if there is any point in keeping Murchison Metals stocks seen as I have had them since their peak at over $1.50 and now they are worth nothing and still falling.Any thoughts on what will happen to MMX after they dont make the Barnet deadline of 31/12/20011?
Thanks in advance
John

 

[System]

On July 25th, 2014, Murchison Metals Limited (MMX) was removed from the ASX's official list following implementation of the scheme of arrangement by which the Company merged with Mercantile Investment Company.