Article – Rinehart Roy Hill backers give $368m

by 23 December 2013

21 December 2013
Nick Evans
The West Australian

Gina Rinehart’s equity partners in the Roy Hill iron ore project have kicked in another $368 million as global export credit agencies approved the first steps of the company’s massive debt raising.

Documents filed with the Australian Securities and Investments Commission show the pace of the equity draw-downs at the project is accelerating as work on site ramps up.

ASIC records from October show Mrs Rinehart’s partners, including Korea’s POSCO, Japanese conglomerate Marubeni and Taiwanese steelmaker China Steel Corporation, contributed $224 million, followed by a $273 million drawdown documented in November and $368 million this month.

The latest documents were filed this week ahead of a decision by the US Export-Import bank board to lend Roy Hill up to $US694 million ($782 million).

Despite opposition from some political figures, the export credit agency board voted on Thursday night in favour of the loan package, which will in part be used to purchase heavy rail and mining equipment manufactured in the US by Caterpillar, GE and Altas Copco.

Mrs Rinehart is understood to be chasing up to $US4.3 billion in loans and loan guarantees from export credit agencies in Japan, Korea and the US.

A statement issued by the US Ex-Im Bank indicated loans by several of the other credit agencies had already been approved.

“Export credit agencies of several other countries have obtained preliminary or final approvals for the Roy Hill transaction as well,” the statement said.

Korean media stories this week said the Korean EximBank had agreed to extend $US1 billion in project financing loans.

The 55 million tonne-a-year Roy Hill iron ore project will cost an estimated $10 billion to construct.

Courtesy of The West Australian

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