Ex-Im Bank Approves $694 Million to Finance Export of U.S. Mining and Rail Equipment to Australia
December 19, 2013
(Ex-Im Bank)
Transaction Supports 3,400 U.S. Jobs
Washington, D.C. – In a decision that will
support thousands of U.S. jobs, the
Export-Import Bank of the United States (Ex-Im
Bank) has authorized a $694.4 million loan to
Roy Hill Holdings of Australia contingent upon
the purchase of U.S. mining and rail equipment
from Caterpillar Inc., GE, and Atlas Copco.
According to Bank estimates derived from
Departments of Commerce and Labor data and
methodology, the credit will support 3,400 U.S.
jobs across America. Furthermore, an estimated
20 percent of the job support will benefit
small-business jobs.
"After a comprehensive review, the Bank
determined that this transaction represents a
significant opportunity for American exporters
to create and sustain American jobs," said
Ex-Im Bank Chairman and President Fred P.
Hochberg. "Our financing positions American
companies on a level playing field so they can
close the sales and expand their homegrown
workforces. Projects this size can be difficult
to finance—that's where Ex-Im comes in. And I
am proud that today's action will support 3,400
jobs across the country, many of them at small
businesses."
Export credit agencies of several other
countries have obtained preliminary or final
approvals for the Roy Hill transaction as
well.
The exported equipment will contribute to the
development of the Roy Hill iron ore mine, an
open-pit surface mine in the Pilbara region of
northwestern Australia. The mine sits
approximately 280 kilometers south of Port
Hedland.
Ex-Im Bank's loan increases the likelihood that
Caterpillar, a leading equipment manufacturer
based in Peoria, Ill., will provide
surface-mining equipment for the project.
"Caterpillar applauds Ex-Im Bank for approving
the long-term financing request for the Roy
Hill's Australian iron-ore project," said Steve
Wunning, group president with responsibility
for the Resource Industries Group, Caterpillar
Inc. "By backing this project, Ex-Im Bank is
bolstering U.S. manufacturing competitiveness,
supporting American jobs and promoting exports.
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. We appreciate the support of
Chairman Hochberg and all the Ex-Im Bank
officials who worked so hard to get us to this
point."
The financing also increases the likelihood
that GE will furnish locomotives to transport
the iron ore to the port.
"Ex-Im Bank's support of the Roy Hill's
Australian iron-ore project represents a major
milestone for the mining industry and U.S. job
growth," said Russell Stokes, president and
chief executive officer, GE Transportation.
"Further, it's testament to the great outcomes
that can be achieved through collaboration of
federal and private sector leadership. We're
thrilled to have our locomotives leading the
charge and enabling transport efficiencies."
In line with its economic-impact procedures,
Ex-Im Bank performed a detailed economic-impact
analysis and found that the transaction will
likely have a significant net positive effect
on the U.S. economy. Additionally, Ex-Im Bank
obtained a market-based supplemental analysis
prepared by a third party that also yielded a
positive finding.
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