Murchison risks being run off the rails
Business Spectator reports the scale of the challenge confronting new Murchison Metals chairman, and former AGL chief executive, Greg Martin has been made clear by Monday’s presentation on the proposed Oakajee Port and Rail project and Murchison’s Jack Hills iron ore joint venture.
Murchison, a company with a market capitalisation of less than $300 million, is trying to develop projects with combined capital costs of almost $10 billion.
Business Spectator reports:
Murchison does have a couple of things going for it. Its partner in both projects is Japanese giant Mitsubishi Development and both the West Australian and federal governments are very supportive of the Oakajee project, which would open up WA’s mid-west iron ore province.
It also helps that the feasibility studies on both projects have indicated they are technically and commercially viable, with one critical proviso. The Oakajee deep water port and railway project is only viable if Murchison can lock in foundation customers for the $5.94 billion project.