PERTH (miningweekly.com) – Australia’s export credit agency Export Finance and Insurance Corporation (Efic) was optimistic that the country’s small- and medium-sized (SME) exporters would benefit from the expansion of the Oyu Tolgoi copper-gold mine, in Mongolia.
Mining giant Rio Tinto this week secured $4.4-billion in project financing to construct the underground operation at Oyu Tolgoi, following a deal with a number of international financial institutions and export credit agencies, including Efic.
“Australia has world class expertise in underground mining and the project represents a major business opportunity for a large and diverse number of Australian SME exporters,” said Efic MD Andrew Hunter.
“An estimated 200 Australian SMEs have already been involved in providing services during the initial phase of the Oyu Tolgoi project, with contracts worth more than $83-million.”
Hunter said that with Efic’s support, even more Australian SME exporters would be able to be involved in the next phase of the project.
“Efic is delighted to support this project which provides a fantastic opportunity to showcase Australia’s world class mining expertise and services.”
“An important part of Efic’s role is to ensure that, where possible, we enable Australian SME involvement in the supply chain for large projects such as Oyu Tolgoi. By providing this loan, we have been able to enhance the prospects that Australia, and particularly our SMEs, will enjoy ongoing involvement in this exciting project.”
Efic would provide a loan of up to $150-million to Oyu Tolgoi to help finance the the development of an underground mine.