Gindalbie confirms $1.2bn loan

April 13, 2010 By Leave a Comment

Mid West iron ore miner Gindalbie Metals has locked in a $1.2 billion loan to bankroll its Karara project.

The 12-year loan is being provided by China Development Bank and the Bank of China and is seen by many as the final hurdle for the Karara development.

Conditions of the agreement and terms of the loan are expected to be finalised by June 30.

In a statement, Gindalbie chief executive Garret Dixon said the deal paves the way for the Karara mine to begin production next year.

Gindalbie has also awarded a multi-million-dollar rail contract to QR Freight.

The deal is the largest individual long-term contract awarded for the Karara project to date and covers the transport of iron ore by rail from the mine site to Geraldton and later the Oakajee Port.

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Further sales secured by Gindalbie

April 8, 2010 By Leave a Comment

Gindalbie Metals has finalised a second agreement covering the life of its Karara iron ore mine in the Mid West.

Last week, the miner revealed it had signed a $65 billion export deal with its Chinese joint venture partner Ansteel for magnetite ore.

Yesterday, Gindalbie announced it had also reached agreement for the sale of haematite iron ore from the project.

Corporate Affairs Manager Michael Weir says the haematite is a much smaller amount but still significant.

Mr Weir says the agreement demonstrates the significant progress being made on the Karara project.

“On our current time frame we’re looking at producing our first haematite around mid 2011 so the middle of next year and we’ll look to have some magnetite concentrate shipped out in the second half of next year, so production from this project is really not that far away.”

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$60 billion iron ore deal

April 1, 2010 By Leave a Comment

WA iron ore miner Gindalbie Metals has secured one of Australia’s biggest export deals with China.

Gindalbie Metals has signed a $60 billion sales contract with its Chinese joint venture partner, Ansteel.

Under the agreement, Gindalbie will sell all of its magnetite iron ore from its Karara project for 30 years.

The company began construction of the mine last year and is expected to begin production in the second half of 2011.

Gindalbie’s chief executive Garrett Dixon says the project would have stalled without the deal.

“Without an offtake arrangement and a guarantee of payments in the future for your iron ore, you really can’t develop a project,” he said.

“It’s a major step for us and underpins all the other things we’ve been doing. It’s taken a while to get here but it just shows the importance of the agreement.”

Mr Dixon says it is a great outcome for both parties.

“We have a really good relationship, so locking this away means Ansteel actually has a long-term source of premium iron ore for the life of the project,” he said.

Mr Dixon says Gindalbie is close to finalising an offtake deal for its haematite iron ore deposits.

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Miners lead share market higher

March 31, 2010 By Leave a Comment

The Australian share market has been pushed higher by strong gains in the mining sector.

The ASX 200′s resources sub-index ended the day more than 1.5 per cent higher.

The most stunning gain was by Gindalbie Metals, after its Chinese partner Ansteel signed-off on a long-term deal to buy iron ore worth up to $70 billion.

Gindalbie’s shares surged more than 7 per cent to $1.18 by the close.

The world’s biggest miner, BHP Billiton, gained almost 2.5 per cent to $44.41 after shifting most of its iron ore sales onto shorter-term contracts.

Its Brazillian rival Vale also announced a similar move to quarterly contracts.

Rio Tinto followed the other miners higher, gaining more than 1 per cent despite jail terms of between seven and 14 years being handed to its four former executives who were yesterday convicted by a Chinese court of taking bribes and stealing commercial secrets.

Australia’s largest supplier of agricultural chemicals, Nufarm, fell 6.5 per cent after a stock exchange filing revealed its managing director had sold off three million of his shares in the company, triggering downgrades by several analysts.

Telstra also weighed on the market, as it continued its slide back towards $3.

The nation’s biggest telco ended the day 1.3 per cent lower at $3.02.

Overall, the All Ordinaries closed 20 points higher at 4,927, and the ASX 200 also gained 20 points to close at 4,917.

Currencies and commodities

West Texas crude oil was worth $US82.26 a barrel at about 5:00pm (AEDT), while Tapis was fetching $US81.97.

Spot gold was worth just over $US1,110 an ounce.

The Australian dollar had climbed to 91.90 US cents.

On the cross rates, it was at 84.91 Japanese yen, 68.11 euro cents, 61.22 British pence, and $NZ1.293.

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