- Region: Oceania
- Energy and Natural Resources
- Overseas Investment Loans
July 31, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today, two loan agreements amounting up to approximately 436 million U.S. dollars (JBIC portions) with Mitsui & Co. Iron Ore Exploration & Mining Pty. Ltd. (MIOE), an Australian subsidiary of Mitsui & Co., Ltd., and 400 million Australian dollars (JBIC portions) with ITOCHU Minerals & Energy of Australia Pty Ltd (IMEA), an Australian subsidiary of ITOCHU Corporation, respectively. The loans are cofinanced with private financial institutions.
- The loans are intended to finance MIOE and IMEA to acquire 7 and 8% of interests, respectively, in Jimblebar Iron Ore Mine from BHP Iron Ore (Jimblebar) Pty Ltd, incorporated in Australia, under development for reaching the annual production capacity of 35 million tons.
- Steel is used extensively for various products, including automobiles and construction materials. Since Japan depends entirely on the import from overseas including Australia, iron ore is one of the fundamental metal resources for Japanese industries. As demand for iron ore is expected to rise on a global level with growth of emerging economies such as China, in recent years, it has become an important challenge to secure stable medium- and long-term supply of high grade iron ore. The grade of iron ore produced from the Jimblebar iron mine is comparable to the iron ore Japanese steel makers have long procured and thus suitable as raw material for steel. Therefore, these loans, which lead to an increased supply of high grade iron ore to Japan, will contribute to securing a medium- and long-term, stable supply of mineral resources to Japan.
- As a public financial institution, JBIC will continue to support the development and acquisition of interests in natural resources that are strategically important for Japan by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.