Dow Jones reported that South Korean steel giant POSCO may increase its involvement in Western Australia's AUD 4.4 billion Oakajee iron ore, port and rail project.

Mr Colin Barnett Premier of Western Australia said that "POSCO has always been a participant in Western Australia. They may increase their involvement in Oakajee, something that I would encourage."

Mr Barnett's comments are the latest evidence of international interest in Oakajee, a venture designed to open up a new Mid West iron ore province to compete with ports in the state's established Pilbara region.

Several Chinese backed projects are developing mines in the region and hope to ship their iron ore products out of the new deep water port from mid decade. Japan is also involved, with Mitsubishi Corporation partnering Perth based Murchison Metals Limited in a JV that is preparing final feasibility studies.

On March 2nd 2011, the Oakajee partners were granted an extra nine months by Barnett's government to finalize agreements with the state on the port and rail infrastructure. A bankable feasibility study is due for release in the June quarter. POSCO is a long term shareholder of Murchison with a 13.9% stake.

Mr Paul Kopejtka executive chairman of Murchison said that "As our major shareholder and a key iron ore customer of the Jack Hills project, POSCO is clearly very supportive of Murchison and our mining and infrastructure businesses. As such, the potential for closer co operation with one of the world's premier steel producers is obviously something we regularly discuss with them as part of our business execution strategy."

(Sourced from www.dowjones.com)