JOHANNESBURG (miningweekly.com) – Iron-ore joint venture (JV) Karara Mining has secured a $200-million loan from China-based Shanghai Pudong Development Bank, ASX-listed Gindalbie Metals reported on Wednesday.
The new loan would provide the JV with working capital to support the Karara iron-ore project, in Western Australia.
The $200-million loan facility was on terms consistent with Karara Mining’s existing loan facilities and would mature in March 2019.
Earlier this year, Chinese steel company Ansteel withdrew funding support for Karara Mining, citing the economic and industry downturn.
The Karara project is based on the integrated development of a substantial, long-life magnetite concentrate operation with the potential to produce 30-million tonnes a year for 30 years, and a smaller scale hematite operation.
Ansteel owns 52.16% of Karara Mining and Gindalbie the balance.