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More financing secured for Karara - Gindalbie

More financing secured for Karara - Gindalbie

Photo by Bloomberg

13th May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore miner Gindalbie Metals on Tuesday announced that the operating vehicle for its Karara project, in Western Australia, had secured a $300-million loan facility.

Karara Mining had signed a binding facility agreement with China Merchant Bank for the new fixed-term loan facility, which would meet a A$123.6-million funding shortfall to allow the Karara project to reach nameplate capacity.

At the end of March, Gindalbie reported that a technical review into the project had identified the need for an additional 55-m-diameter tailings thickener, as well as the construction of a second wet tailings storage facility, and the installation of dewatering cyclones after the rougher magnetic separation stage.

The additional debottlenecking work would allow the Karara project to reach its nameplate capacity of 8.8-million tonnes a year.

Gindalbie said that the facility had been arranged by joint venture partner Ansteel.

Meanwhile, Karara Mining had also obtained a waiver from its existing Chinese Banking Syndicate for breach of a financial debt service cover ratio under the terms of its senior debt facilities for the December, March and June quarters.

Edited by Creamer Media Reporter

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