Gina Rinhart has secured $7.2 billion in funding for the Roy Hill iron ore mine in Western Australia from a global consortium of banks including Australia’s majors and a group of national export-import finance banks.
The ABC reports that Roy Hill chief executive Barry Fitzgerald is somewhat ebullient about the funding which is reported to be the largest debt financing for a mining project in the world.
Mr Fitzgerald said: “The structure and quality of the project has allowed us to secure an internationally competitive cost-effective funding structure which can endure market fluctuations.”
It seems that the inclusion of the export-orientated agencies might be part of the good funding arrangements with the Wall Street Journal reporting overnight that
“The Export-Import Bank of the United States approved a $694.4 million loan to Roy Hill, as long as it buys mining and rail equipment from U.S. companies such as Caterpillar Inc. and General Electric Co.”
This is part of how the iron ore mined at Roy Hill will get to market, with both a rail line to and new hub in Port Hedland needing to be built.
Production is due to start in 2015.
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