Gindalbie Metals Limited (ASX:GBG) is considering a small equity stake in Murchison Metals Limited’s (ASX:MMX) $6 billion Oakajee Port and Rail project in Western Australia.
The company’s managing director has confirmed they are eyeing a stake but said it would be “a single-digit figure”, and, purchased with a view to facilitate the project's development rather than as a vital investment.
Gindalbie’s flagship $2.6 billion Karara Project in also located in Western Australia and initially will use the existing Geraldton port to export iron ore.
However, the company could benefit from Oakajee in around five years when Karara’s production is scheduled to increase to 16 million tonnes per annum.
Last month Murchison flagged $5.9 billion in cost blow outs for the Oakajee project that is being equally developed with Japan’s Mitsubishi Development Pty Ltd.
In the first six months of the 2011 financial year Gindalbie Metals recorded a net profit of $313,000.
