Spinifex gets Chinese finance approval
- Publishing Date
- 03 Dec 2010 4:10pm GMT
- Mining Journal
Hanlong Mining Investment Ltd has received final approval from the Chinese government for its planned financing of the Spinifex Ridge molybdenum-copper project in the Pilbara region of Western Australia.
Spinifex is operated by Perth-based Moly Mines Ltd, which has confirmed that China's National Development and Reform Commission (NDRC) has given its permission for Hanlong to fund development of the 10Mt/y molybdenum-copper mine. Production from the separate iron-ore mine at Spinifex commenced at the end of November.
In an agreement signed in October 2009, Moly Mines' major shareholder Hanlong committed to arranging US$500 million in project finance for the project by the end of next month. NDRC has approved Chinese bank loans of up to US$466 million, with the balance currently being sourced by Hanlong.
With these funds now secured, Moly Mines' banking syndicate will finalise the terms of the remainder of the project financing. This arrangement is expected to be completed by end-January.
Iron-ore production at Spinifex has started at a rate of 1Mt/y, with initial shipments of fines being expected by mid-December (using the company’s stockpiling facilities at Utah Point at Port Hedland).
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