Port and rail project dumped by Chinese giant Sinosteel

West Australian Premier Colin Barnett says he expects a reshuffle of the partnerships behind the giant Oakajee port and rail project but remains confident it will go ahead.

China's Sinosteel yesterday announced it's shutting down its two billion dollar Weld Range iron ore project in WA's Midwest until

uncertainty around the four billion dollar Oakajee development is resolved.

The move by one of the project's major foundation customers has put the already-troubled development in question.

Sinosteel says delays in getting the project underway are costing it 100 million dollars a year.

Mr Barnett says he understands Sinosteel's position but it hasn't walked away from Oakajee and only put its mine on hold.

He's told ABC Radio the project will go ahead but he expected there'll have to be some realignment of the partners.