It is reported that Murchison Metals troubled half of the USD 5.9 billion Oakajee Port and Rail project has been freed up for sale to venture partner Mitsubishi after the resolution of a legal battle with junior Chameleon Mining.

Murchison has settled the four year Federal Court dispute over the Jack Hills iron ore mine in which Chameleon claimed a financial interest for a cash payment of USD 25 million.

Chameleon will be paid USD 20 million from the proposed sale of Murchison's interests in Oakajee and Crosslands Resources worth USD 325 million, under the agreement. Murchison must also make a USD 5 million cash payment to Chameleon in the next week.

Oakajee has been touted as a vital infrastructure project for Western Australia fledgling Midwest iron ore region by the state Premier Mr Colin Barnett. Uncertainty over the proposed deep water port development arose in June when Murchison announced it could not pay its way.

Mitsubishi which also owns the other half of the project and Crosslands the owner of Jack Hills made a rescue bid last month. Settling the Chameleon litigation was a Mitsubishi-instigated requirement for the deal to go ahead.

The sale to Mitsubishi must still pass a Murchison shareholders vote scheduled for February. Other hurdles remain, including approval from the Foreign Investment Review Board for a deal that would effectively put a big piece of Australian infrastructure in foreign hands.

(Sourced from www.smh.com.au)