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Roy Hill gets $7.2bn funding package

Roy Hill gets $7.2bn funding package

Photo by Bloomberg

21st March 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Mining personality Gina Reinhart has secured a $7.2-billion funding package for the Roy Hill iron-ore mine, in Western Australia.

The debt package, which completes the funding for the $10-billion project, comprises loans and guarantees from five export credit agencies and a consortium of 19 commercial banks from Australia, Europe and Asian countries.

“The project has strong partners with international experience in finance, engineering, construction, marketing and logistics, which has assisted in the attraction of support from the international finance community,” Reinhart said this week.

Currently under construction, the Roy Hill mine was expected to deliver its first export project by September 2015. The operation would produce 55-million tons a year, over a life-of-mine of more than 20 years. The project would involve a fleet of 18 haul trucks and two excavators, and would employ about 220 people.

“Roy Hill is a crucible of opportunity during a period of global uncertainty – it has already shown it will create new jobs and benefit the greater mining and construction-related industries, it will add to Australia’s exports and significantly benefit our West Australian and national economy,” Reinhart added.

Roy Hill CEO Barry Fitzgerald noted that the debt financing was the largest-ever project financing for the development of a land-based mining project.

“The structure and quality of the project has allowed us to secure an internationally competitive, cost-effective funding structure which can endure future market fluctuations,” he said.

 

Edited by Creamer Media Reporter

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