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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