Chinese banks support Iron Road Central Eyre Iron Project

THREE Chinese banks have formally lodged expressions of interest to fund the debt financing component Iron Road’s $US4 billion Central Eyre Iron Project. 

Iron Road stakeholder engagement principal advisor Tim Scholz said Iron Road was pleased the banks had shown significant interest in the project.

He said the banks – Industrial and Commercial Bank of China, China Development Bank and China Construction Bank – including the two biggest banks in the world, would finance the $US3 billion debt aspect of the project. 

Mr Scholz said the China Railway Group had confirmed it would take about 50 per cent of the product (iron ore) each year from the completed mine.

“China Rail has confirmed its intentions to sign an off-take agreement for 10 million tonne concentrate yearly,” Mr Scholz said. 

The China Railway Group has supported the Central Eyre Iron Project since April 2016 with the China Railway Oriental International Construction Corporation, a subsidiary of the China Railway Group Limited providing $5 million worth of consultancy services during the Central Eyre Iron Project’s commercialisation phase.

Mr Scholz said all three institutions wanted to achieve financial close by December this year. 

Cleve District Council mayor Roger Nield said he had recently met with an Iron Road official who had advised him, pending the successful outcome of  government applications, works at the the mine, the infrastructure corridor (railway line) and proposed deep sea port at Cape Hardy, near Port Neill, would be underway within two years. 

Iron Road is waiting on a decision by the state government on its applications for a mining lease and infrastructure approvals.

Mr Scholz said information about the Central Eyre Iron Project was available at and he and the company were open to community discussion at all times.