The Mid West Chamber of Commerce and Industry says the decision to scale back the Oakajee Port and Rail project is not the end of the development.
It was revealed yesterday that Oakajee's Japanese backer Mitsubishi had slashed jobs and spending on the project which has been plagued by delays.
The company has blamed economic conditions and slow progress in securing a Chinese equity partner.
The Chamber CEO Bill Headley says Mitsubishi was not left with many options in the current economic climate.
"I think it's a prudent management decision by Mitsubishi," he said.
"They're not one of the big five companies in the world by spending seven hundred million dollars on something and then walking away from something.
"They are a very astute business and I don't see them walking away at all." The Shire President of Chapman Valley, where the project is to be built, says the scaling-back of Oakajee is a blow for Mid West mining companies.
John Collingwood says it is a shame it has happened but it was on the cards.
"Very disappointed because I think it's probably about the fourth time a group have tried to get a port going at Oakajee and I think we'd all hopes that the rocks might be being laid at this stage or they should have been," he said.
"But I think no one could have foresee the economic mess that happened a couple of years ago and it's taken a lot longer to sort itself out."