|China part of consortium funding US$7.5b Aussie iron ore deal
Australia's richest person Gina Rinehart announced a US$7.2 billion funding package for the massive Roy Hill iron ore mine in Western Australia.
The deal, signed in Singapore yesterday, involves a consortium of 19 commercial banks from Australia, Japan, South Korea, China, Europe and Singapore, and a number of major export credit agencies, provide the finance.
Roy Hill chief executive Barry Fitzgerald said it was the biggest funding package of its kind in the world that he knew of.
“I am advised this is the largest ever project financing for the development of a land-based mining project worldwide,'' he said in a statement.
Rinehart's company, Hancock Prospecting, owns 70 percent of the project, with the rest in the hands of South Korean steel giant Posco, Japan's Marubeni Corporation and Taiwan's China Steel Corporation.
Once up and running, the US$10 billion project, with a mine life of 20 years in the resource-rich Pilbara region, will be capable of producing 55 million tonnes per year of the steelmaking commodity, making it one of the world's biggest producers.
The first exports are scheduled for September 2015.
Rinehart said support from the international financial community “is a strong vote of confidence.’’—AFP