Giant Iron Venture By Co-operation

Press, Volume CVI, Issue 31341, 11 April 1967, Page 24

Giant Iron Venture By Co-operation

(N.Z. Fret* Association—Copyright)

PERTH, April 10.

A four-nation project to spend 200 m dollars on the development of Australia’s biggest iron ore development was launched in Perth today, when representatives of United States, Japanese, British and Australian companies signed into being the Mount Newman project to tap all known reserves of 700 m long tons.

Today’s ceremony was the first official confirmation of the participation of British i and Japanese interests in the project, although I it had been known in financial circles for some time.

The Premier (Mr David Brand), signing the document for the West Australian Government, called it “a significant breakthrough . . . the biggest financial and industrial deal ever done in Australia.” The Selection Trust of the United Kingdom will have a 5 per cent interest, and a consortium of the Mitsui and C. Itoh concerns, of Japan, will hold a 10 per cent interest between them.

American Metal Climax '(Amax), of the United States will be a 25 per cent shareholder, and the balance is divided 30 per cent each between two Australian industrial giants, the Broken Hill Pty. Company, Ltd, and the Colonial Sugar Refining Company, Ltd. The Australian Mutual Provident Society has taken a 23.8 per cent interest in the C.S.R. iron-ore subsidiary, Pilbara Iron Ltd. The Mt Newman venture originally was to be owned 50 per cent each by Amax and C.S.R but the financial structure changed considerably after estimates of development costs rose from the original figure of 100 m dollars. Projects to be completed

before the first shipment include a 256-mile railway to the coast, and port facilities. Japanese steel mills have

already contracted to buy 100 m long tons of Mount Newman iron ore under a 15-year agreement, with the first shipment due April, 1969. The contract, involving 750 m dollars was believed to be one of the largest single raw material purchases in the world, Mr Brand said.