Loan for Expansion of West Angelas Iron Ore Mine and Related Infrastructure in Australia
Supporting Securement of Mineral Resources and Development of Overseas Iron Ore Mine Participated by Japanese Company
- Region: Oceania
- Energy and Natural Resources
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement amounting up to AUD280 million (JBIC portion) with Mitsui Iron Ore Development Pty. Ltd. (MIOD), an Australian subsidiary of Mitsui & Co., Ltd. The loan is cofinanced with private financial institutions, bringing the overall cofinancing amount to AUD400 million.
The loan is intended to finance partially the expansion of production capacity of West Angelas Iron Ore Mine and the replacement and expansion of port facilities at Cape Lambert where the produced iron ore is exported from the Pilbara region of Western Australia, owned by MIOD which has interests in the mine and related infrastructure. With this loan, the total production capacity at West Angelas will be expanded from 29 million tons per annum (mtpa) to 35 mtpa.
Since steel is used extensively for various products, including automobiles and construction materials, iron ore, raw material for steel, is one of the fundamental metal resources for Japanese industries. As demand for ion ore is expected to rise on a global level with growing demand among emerging economies such as China, and Japan entirely depends on imports from overseas including Australia, in recent years, it has become an important challenge to secure a stable and long-term supply of high grade iron ore. The high grade iron ore from West Angelas is suitable as steel raw material and comparable to the iron ore that Japanese steel manufacturers have been using over a long period of time. This loan, which will lead to an increased supply of high grade iron ore to Japan, will contribute to securing the stable and long-term supply of mineral resources to Japan.
As Japan's policy-based 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.