Finally, Japan's Mitsubishi Corporation formally came out on Thursday and denied media reports that it has abandoned its Australian partner, Murchison Metals Ltd (ASX: MMX), on their joint venture of constructing the Oakajee port and rail project in Western Australia.

In a statement issued through Murchison, the Japanese conglomerate labelled its exit rumours from the Oakajee Port and Rail project as completely groundless.

The two firms are equal partners in establishing the Oakajee undertaking, where they are set to develop a deepwater port north of Geraldton in midwest WA in order to decongest the existing Geraldton Port and possibly raise up the value of the iron ore mines already operating in the region.

Murchison and Mitsubishi are also working on mining activities in Jack Hills through Crosslands Resources.

Murchison quoted Mitsubishi as saying that "the recent rumours regarding Mitsubishi's withdrawal from its Western Australian mining and infrastructure joint ventures are completely groundless, and our involvement and commitment to these projects remains entirely unchanged."

The statement further said that "through our joint ventures (Crosslands Resources and Oakajee Port & Rail), we continue to make every possible effort to drive forward the feasibility studies of these projects, with our target set at the first shipment of iron ore in 2014."

Murchison executive chairman Paul Kopejtka admitted that the Mitsubishi statement brought considerable form of relief for the company as he expressed joy that finally the circulating rumours were proven wrong and put to rest.

Mr Kopejtka reiterated that Murchison and Mitsubishi enjoy a very good working relationship as he conceded that it was stressful for the company to deal with questions on the Japanese firm's commitment on their partnership.

Yes since the air has now been cleared by Mitsubishi's official statement, Mr Kopejtka said that "we look forward to now getting on with the development of these two world class projects."

As of 1200 AEST on Thursday, Murchison Metals shares were trading at $1.72 per share, picking up gains of 8.5 cents or 5.2 percent from previous trading sessions.