Gina Rinehart raises $7.2billion for Roy Hill project

Gina Rinehart has raised $US7.2 billion to finance the Roy Hill iron ore project in the Pilbara through a consortium of international financiers.

Rinehart said the project would be a boon for the West Australian economy.

“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”.

“I am immensely proud that Hancock, a wholly-owned West Australian company, is taking the lead on such a significant project. It is a strong vote of confidence in Hancock and Roy Hill that this financing has attracted such substantial international investment and support”.

“Today we already have 2500 people working on the construction of the project; this will peak at 3600 later this year before we employ 2000 permanent staff through operations.”

The US$7.2b debt package is comprised of loans and guarantees from five Export Credit Agencies and a consortium of 19 commercial banks from Australia, Japan, Europe, China, Korea and Singapore. Substantial support from Japan Bank for International Cooperation, Korea Eximbank, Korea Trade Insurance Corporation, Nippon Export and Investment Insurance and Export-Import Bank of the United States underpinned the financing.

“I am advised this is the largest ever project financing for the development of a land-based mining project worldwide,” said Roy Hill Chief Executive Officer Barry Fitzgerald.

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

Production at the mine is expected to start late next year.

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