Roy Hill Mining PRoject

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Roy Hill Mining PRoject

Australian mining magnate Gina rinehart’s $10 billion roy Hill iron ore project has overcome key hurdles holding up debt negotiations, a move that could pave the way for the mine to start producing by September 2015, sources said.

Getting Roy Hill into project further in Western production is likely Australia’s iron-rich Pilbara to boost further the region. fortunes of Gina Rinehart, already Australia’s richest “Although a guarantee from a person with a net worth party with strong credit would estimated by Forbes at $17 be one of the simplest ways billion. to move the project forward However, it could also add to not the only way to reduce an expected glut of the steel- risks,” said a second source making ingredient as rivals with direct knowledge of the Rio Tinto, BHP Billiton and negotiations. Fortescue Metals Group crank up production just as demand “Such ways have been in top consumer China may sufficiently agreed upon, cool. and negotiations are moving The 55-million tonnes-a-year source, without giving more project, which would make details on the agreement. Roy Hill Australia’s fourthlargest iron ore producer, has A Roy Hill spokesman said been steadily pushed back talks were advancing with amid delays in lining up $7 export credit agencies and billion in debt funding. commercial lenders being Export credit agencies (ECAs), the loans required. including Export Import Bank of korea (kEXIM), Japan Bank “We’re cautiously optimistic for International Cooperation we’ll be able to get it wrapped (JBIC) and Nippon Export up in 2013,” spokesman Darryl & Investment Insurance Hockey said. (NEXI) had been pressuring Roy Hill shareholders led by Gina Rinehart’s Hancock Prospecting Pty Ltd to fully guarantee that the project reaches completion, in return for up to $5 billion of loans. Aiding progress on the project on the equity side, a minor partner in Roy Hill, South korea’s STX Corp, has sold its 2.5 percent stake to one of the other partners, said another source. The ECAs also sought payment guarantees for ore purchase contracts by Chinese steel mills, said a banking source familiar with the talks. Conglomerate STX first invested in the Roy Hill project in 2010 and last year paid $200 million to take up a 2.5 percent stake, but sold out due to a The parties have now downturn in its shipping and negotiated a compromise shipbuilding business. to break the deadlock that had threatened to delay the in the eyes of the ECAs, it is ahead speedily,” added the tapped for the remainder of

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PoRt PiRie to HoSt BiggeSt ReSouRceS conFeRence and tRade exPo on SPenceRgulF witH oil & gaSFocuS

The biggest resources and trade expo for South Australia’s Upper Spencer Gulf has been expanded to feature an exclusive in-depth session on the State’s burgeoning oil & gas sectors for the first time in its nine-year history.

The South Australian Chamber of Mines and Energy (SACOME) are once again co-hosting the annual Resource Industry Conference and Trade Expo with Global Maintenance Upper Spencer Gulf (GMUSG), to be held from August 21-22 in Port Pirie.

The two-day event is expected to attract over 50 exhibitors with a range of high-profile speakers already confirmed. The event allows businesses and communities to explore ways the Upper Spencer Gulf can harness the increased minerals and oil & gas activities within the State’s north.

The conference is rotated between the three Upper Spencer Gulf cities and builds on the highly “Connecting small businesses with successful 2012 event in Whyalla the mining and energy industry which attracted a sell-out 380 is something both SACOME delegates and 36 trade exhibitors. and GMUSG are focussed on, Featuring speakers from opportunity to form and build companies that operate in those relationships,” he said. the region – including Arrium Mining and Nyrstar – as well as “And with oil & gas a key growth BHP Billiton, OZ Minerals, Santos, area for South Australia, it is Senex and other stakeholders important to feature how the from government departments, flow-on effects of the increased the event is well-attended by both activity in this sector can be service providers and industry harnessed by the Upper Spencer representatives. Gulf businesses and communities.”

SACOME Chief Executive, Jason kuchel, said the conference gives businesses, agencies and communities in the region an opportunity to identify cluster groups of companies in the global resources industry. and this conference is a perfect GMUSG Chairman, Greg Clothier, said the conference is of exceptional value in comparison to other regional conferences, and gives delegates the opportunity to see firsthand what government and regional communities are

doing to foster industry growth.

“I’m putting out a call to action for business people and community leaders to attend the conference, both for its exceptional value and vital industry and business content,” he said. Costing just $260 for a two-day pass for SACOME and GMUSG members, this event is highly affordable and great value. Further details and registration is available at www.sacome.org.au Further information: Jason kuchel, Chief Executive, SACOME 08 8202 9999.

GMUSG Chairman Greg Clothier (right) with delegates at last year’s conference in Whyalla