Oakajee thrown a lifeline

The development of the bulk port is closely tied to the activities of iron ore miners, whose expansion in the mid-west is required to give the proposed port a guaranteed export volume of 30m tonnes per annum. Oakajee was originally meant to start construction in 2011 and begin shipments in 2014.

However, falling iron ore prices and the mothballing of some mining projects has led to doubts the Oakajee project will proceed.

Mr Barnett has stepped in to encourage miners to continue with their plans, saying their industry will not be taxed out of existence. Instead, lower royalty rates during start-up would help get industries established.

A further assistance in keeping the project alive is the decision of WA’s environment watchdog to extend the time needed to begin construction of the deepwater channel segment near Geraldton until February 2018.