HANCOCK Prospecting will begin to profit

The Australian company HANCOCK Prospecting continues to develop a project to extract iron ore from the Roy Hill field located in the western part of Australia. In many ways, the project financing occurs due to loans that HANCOCK Prospecting, as well as its partners, were able to receive in December last year.

In addition, the project is financing thanks to the investment of the United States Export-Import Bank (EX-IM Bank), which invested $ 789 million in the development of the Roy Hill field. like loans, money from EX-IM Bank was received in December last year.

In addition to ex-Im Bank, assistance in the implementation of the project is also provided by Korean financial structures. In particular, they help HANCOCK Prospecting, as well as its partners to pay off huge debts associated with the organization of iron ore and construction of infrastructure in the area of ​​the Roy Hill field.

Recall that the project for the development of the latter involves the opening of a huge mine, as well as the construction of the railway and commodity port, serving for the export of minerals. At the same time, the debts of HanCock Prospecting and its partners related to the implementation of this plan amounted to $ 7 billion. Therefore, the assistance of financial organizations in repaying this debt is very important for project organizers.

It is also worth mentioning the repayment of credit loans by the borrowers themselves. According to the Australian Securities and Investment Commission (ASIC), in January 2014, Hanrine Holdings, associated with Hancock Prospecting, made the next loan contribution received for the development of the Roy Hill field. The total amount of this payment amounted to 251.6 million US dollars.

Together with Hanrine Holdings, the Korean partners of the HANCOCK Prospecting also contributed to the repayment of December loans. In particular, the Korean Posco mining company, also related to the development of the Roy Hill field, made a payment on another loan, which amounted to 15 million US dollars.

From this it follows that the HANCOCK Prospecting project, as well as its partners, has a chance for the future, and not around the corner when it begins to make a profit.