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EFIC gives Leighton’s a mining boost

20-09-2011
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in 

Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, has provided a US$81.7 million loan to facilitate the lease of mobile mining fleet and equipment by Leighton Asia, for use in its contract mining operations in Mongolia.

Leighton Asia, a wholly owned subsidiary of Leighton Holdings Limited, has operated the Ukhaa Khudag coal mine in Mongolia since 2009.

As a result of the company’s strong performance, Leighton Asia is expanding capacity, creating a requirement for additional mining equipment.

To enable Leighton Asia to acquire the equipment needed and deliver the expanded capacity, Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, provided a US$81.7 million loan to BNP Paribas to facilitate the lease of mobile mining fleet and equipment by Leighton Asia.

“This transaction with the Leighton Group demonstrates EFIC’s ability to tailor our solutions in supporting Australian exporters,” said Peter Field, Executive Director, Origination and Portfolio Management at EFIC. “To facilitate Leighton’s fulfilment of these contracts, which in turn has the potential to generate further revenue to Australia, we’ve structured a solution to enable the lease financing of mining equipment to Leighton Asia.

“Major projects like Leighton Asia’s Mongolian mining operations have significant and complex financing needs which cannot all be met by the commercial market. EFIC will work with all parties involved to provide the necessary support the Leighton Group requires to continue to expand its mining services business in Mongolia,” said Mr Field.

According to Chief Financial Officer Peter Gregg, “EFIC’s understanding of the fundamentals of Leighton’s business and support of the Ukhaa Khudag mine project will enable Leighton to further cement its position in the Mongolian mining industry.

“EFIC recognised Leighton’s track record of delivery and our diversified portfolio of work,” said Peter Gregg. “The direct loan facility will help us to deliver world class mining solutions to our clients, both through the quality of our people and the safety and reliability of our operations.”

www.efic.gov.au

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