Yesterday Gina Rinehart’s Roy Hill mine hit yet another snag.
At a Sydney Mining Club function last night — held by Rinehart with the intention of celebrating the first shipment — Rinehart’s chief financial officer, Garry Korte, revealed how the mining magnate secured the $US10 billion funding package needed to keep the project afloat.
According to Korte, Rinehart “personally” hosted a lunch in the outback, inviting around 80 bankers from around the world.
“She talked to each guest individually,” he said, “which meant we secured virtually on the spot, billions of dollars of commercial bank support.”
Her “personal touch” with the export credit agencies saved the project, said Korte.
It is expected that this was in reference to the $7.2 billion in funding secured in March 2014 from a global consortium of banks including Australia’s majors and a group of national export-import finance banks.
The outback lunch wasn’t all she hosted.
Korte also said Rinheart hosted a “famous” dinner with the “conservative” export credit agencies, who underpinned the finance, without which the project might not have happened.
The shipment delays aren’t Rinehart’s only problem.
Iron ore prices have been tanking, falling again overnight to yet another all-time record low.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by a further 38 cents, or 0.92%, to $40.75 a tonne.
David Scutt has more on that here.
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