The U.S. Export-Import Bank has approved a $694.4 million loan to Roy Hill Holdings of Australia that is contingent upon the purchase of U.S. mining and rail equipment from Caterpillar, GE and Atlas Copco.
Export credit agencies of several other countries have obtained preliminary or final approvals for the Roy Hill transaction, according to a press release.
The exported equipment will help develop Roy Hill's iron ore mine in the Pilbara region of northwestern Australia. The mine is about 280 kilometers south of Port Hedland.
The loan increases the likelihood that Caterpillar, based in Peoria, Ill., will provide surface-mining equipment for the project.
Steve Wunning, group president over the Resource Industries Group at Caterpillar, applauded the loan approval. “Ex-Im Bank is also providing Caterpillar and other U.S. suppliers with the opportunity to support Roy Hill with mining equipment that may have otherwise been supplied by non-U.S. competitors using their countries' export credit agencies,” he said.
According to Ex-Im Bank, the financing also increases the likelihood that GE will provide locomotives to transport the iron ore to the port.
After an economic-impact analysis, the bank said the transaction will likely have a significant effect on the U.S. economy. Additionally, Ex-Im Bank said it obtained a third-party analysis that gave positive results.
In other bank news, Fred P. Hochberg, chairman of the Ex-Im Bank, has
started a blog, which he will use to provide readers with the latest
information about the bank and trade finance trends.
"My plan is to share news about Ex-Im Bank and stories from American
exporters across the country," Hochberg said in a statement. "I hope
this new online platform provides readers with useful information as
they learn how exports boost our economy, create U.S. jobs, and help
small and medium-sized businesses succeed in international markets."
Hochberg’s blog, called Fred’s Thread, may be accessed here.