China backs a $3 billion port project in Geraldton

China's president Hu Jintao has given support to the proposal by Yilgarn Infrastructure to build a port and infrastructure near Geraldton, to boost the flow of Australian iron ore to the resource-hungry superpower.

Yilgarn has received backing from Chinese investors for the development, construction and operation of the $3 billion project — including a new deep water port at Oakajee, north of Perth.

Yilgarn chairman John Saunders said the agreement, plus a debt finance commitment secured from China's EXIM Bank, put his soon-to-be-listed company on the best possible financial footing.

"With the support of President Hu Jintao, Yilgarn is saying "˜we will do this project'," said Saunders.

"There is no question that this will start construction at the end of next year ... come to financial close at the end of this year, and with the cooperation of Chinese and Australian partners, it will happen."

Meanwhile, Midwest Corporation (owners of the Koolanooka mine) has recently aligned itself with Yilgarn after severing ties with Murchison Metals, which had provided a rival proposal to develop the infrastructure.