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.
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that creates and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working-capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services. In the past fiscal year alone, Ex-Im Bank earned for U.S. taxpayers more than $1 billion above the cost of operations.
In FY 2013, Ex-Im Bank approved more than $27 billion in total authorizations to support an estimated $37.4 billion in U.S. export sales and approximately 205,000 American jobs in communities across the country. For the year, the Bank approved a record 3,413 transactions– or 89 percent–for small-businesses. For more information, visit www.exim.gov.
SOURCE: US EXPORT-IMPORT BANK