Padbury Mining Secures $6.5 Bln Port Funding

Posted by Greg Trauthwein
Thursday, April 10, 2014
Source: Padbury Mining
Australia's Padbury Mining Ltd said it had secured almost $6.5 billion in funding to build a new deepwater port and railway at Oakajee in Western Australia, potentially opening a new export hub for the region's iron ore riches.
 
Plans for a port at Oakajee in Western Australia's Midwest region have been in the works under various companies for decades but have so far failed to get off the ground due to volatility in commodity markets and difficulty securing the massive investment needed.
 
"The project has had a thirty year gestation period and it is a game changer for both Western Australia and the Midwest iron ore industry," Padbury said in a statement on Friday.
 
Shares in Padbury surged more than 150 percent at one point on news of the funding, which is being provided by Australian equity investors in three tranches.
 
Padbury said it had been working closely with major Korean engineering firms about the construction phase of the project, which has a $6 billion budget, but did not give a timeline.
 
"The Australia-Korea Free Trade Agreement recently signed by the Prime Minister, has opened the door to greater investment and trade opportunities being created between Korean and Australian companies," Padbury said.
 
Australia and South Korea formally signed a free trade agreement earlier this week.
 
A new port at Oakajee, near Geraldton, would be a small step to breaking the dominance of the iron-rich Pilbara district to the north, where iron ore heavyweights BHP Billiton, Rio Tinto and Fortescue Metals ship hundreds of millions of tonnes each year.
 
"The project will enable a significant number of iron ore projects to move forward into production as well as providing existing producers with the ability to increase their production" Padbury said.
 
Gindalbie Metals sees the port at Oakajee assisting it in its long-term expansion plans in the midwest area.
 
Padbury would retain a 36 percent stake in the subsidiary developing the project, with the new unnamed equity investors holding the remaining 64 percent.
 
Padbury has the right to claw back its shareholding to 49 percent once the private investment has been returned.
 
Its shares last traded up 85 percent at 3.7 Australian cents, valuing the company at about A$125 million.
 
(Reporting By Lincoln Feast; Editing by Paul Tait)
Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

Diana Shipping Announces $53.5m Drawdown

Diana Shipping Inc. announces signing and drawdown of a $53.5 million term loan facility with BNP Paribas; announces time charter contract for m/v Nirefs with Glencore   Diana Shipping Inc.

Marseille Fos Unveils Multimillion Growth Strategy

The Marseille Fos port authority has set out a vision for growth over the four years to 2018 in a strategic plan that puts developments costing $560 million at

US Fleet to Pump $75m into Great Lakes Shipyards

U.S.-flag Great Lakes vessel operators plan to spend $75 million this winter to ready the fleet for the 2015 shipping season, the Lake Carriers’ Association (LCA) reported.

Ports

PlateSmart Ups Security at Port Tampa Bay

Port Tampa Bay, Florida’s largest maritime port and the 16th largest in the United States, has elected to implement PlateSmart's ARES enterprise license plate recognition-based video analytics system.

Maersk to Continue Russian Operations

Denmark's A.P. Moller-Maersk said its four subsidiaries with activities in Russia continue to operate as planned despite the recent sharp drop in oil price and the rouble's collapse.

Marseille Fos Unveils Multimillion Growth Strategy

The Marseille Fos port authority has set out a vision for growth over the four years to 2018 in a strategic plan that puts developments costing $560 million at

Finance

Diana Shipping Announces $53.5m Drawdown

Diana Shipping Inc. announces signing and drawdown of a $53.5 million term loan facility with BNP Paribas; announces time charter contract for m/v Nirefs with Glencore   Diana Shipping Inc.

Maersk to Continue Russian Operations

Denmark's A.P. Moller-Maersk said its four subsidiaries with activities in Russia continue to operate as planned despite the recent sharp drop in oil price and the rouble's collapse.

NSRP Awards $11m for R&D Project Portfolio

The Executive Control Board of the National Shipbuilding Research Program (NSRP) has selected a new round of research and development projects for award, as part

Insurance

DSG Marine Asks Shipowners to Consider Fixed Premium P&I Cover

P&I Insurance Seminar for Owners and Charterers held in Mumbai DGS Marine, a global P&I management provider and exclusive manager for the British European and Overseas (BE&O) P&I Facility,

US Obamacare Impacts the Global Marine Industry

The Affordable Care Act (ACA), otherwise known as Obamacare, the recent healthcare plan in the United States, is affecting the international superyacht industry,

Even 'Small' Vessels are Getting Bigger

The Shipowners’ Club is a mutual provider of P&I insurance that has throughout its 160 year history been dedicated to serving owners of small and specialist ships.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Salvage Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1288 sec (8 req/sec)