Deal close on Oakajee port and rail project rescue

A deal that could allow Japan's Mitsubishi to resthe production of chrome ore for eastern chrome mines in 2011cue the struggling $5.9 billion Oakajee port and rail project in Western Australia may be announced as early as this morning.

Murchison Metals is expected to reveal it will offload its 50 per cent share in the project and the associated Jack Hills iron ore mine to Mitsubishi, its joint-venture partner. Trade in Murchison's shares has been suspended since Monday pending an announcement. Sources in Perth indicated last night an announcement could be made this morning but negotiations had still not been finalised. Speculation in Tokyo centred on Mitsubishi teaming up with Korean steelmaker Posco to rescue the project, which has been in jeopardy amid cost overruns and...