The West Australian reported that Aquila Resources has given the clearest indication yet it is considering handing over the port end of its West Pilbara iron ore project, saying that it could shave AUD 2.4 billion from its capital costs by bringing in third party providers to build some of the project's infrastructure.

In its first major cost update since handing down a AUD 5.8 billion definitive feasibility study two years ago, Aquila said yesterday the projected costs of the port, rail and mine project had blown out by nearly 30% to AUD 7.4 billion.

But a decision is still pending on whether Aquila will outsource construction of port infrastructure at the proposed Anketell Port, as well as rolling stock and other rail infrastructure, and potentially ore processing facilities and power plants. The full outsourcing package would lift cash costs to AUD 39.2 per tonne.

Source - The West Australian

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