Billions Already Spent On Gina Rinehart's Huge Roy Hill Mine Which Might Never Operate

Getty/ Paul Kane

Several senior officials in the Australian iron ore industry have said Roy Hill’s debt package is too large for it to be impossible for the mine to export its first iron ore by the end of 2015.

The joint venture between Gina Rinehart’s Hancock Prospecting, Korean steel giant Posco, Japan’s Marubeni and China Steel Corporation has secured $3 billion in investments and yet it is still unsure if the project will eventuate, reports The Sydney Morning Herald.

The Roy Hill project must prove its economic viability to secure financiers particular as iron ore begin to drop.

According to The SMH, the debt finances are expected to be eased with additional investments from commercial banks worth $US3 billion and another $US4 billion from export credit agencies in nations like Korea, Japan and the United States.

The Rinehart’s legal dispute over the Hancock Trust is not believed to have influenced the company’s debt challenge.

The project communications officer Darryl Hockey has said “Roy Hill continues to make progress with its debt financing, interest remains high and feedback is positive.

“September 2015 is certainly not an aspiration, it’s a solid target,” Hockey said.

Read more here.

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