Roy Hill investors stump up $624m
The extra payments were described in Roy Hill's annual results, which were published by ASIC in the past 24 hours.
The iron ore project, which is being developed by Rinehart in partnership with Korean steel giant Posco, Japan's Marubeni and China Steel, had hoped to have its $US7 billion ($7.4 billion) debt package secured by March. But that process is still under way, meaning joint venture partners were asked to pay further instalments on their stakes sooner rather than later.
"The directors resolved that further calls on partly paid shares be made sufficient to meet existing current commitments in order to progress project activities," the company said its full-year results.
"In the quarter ended 30 September, 2013, call notices totalling $624,000,000 were made and paid by shareholders."
Mrs Rinehart's main company, Hancock Prospecting, will own 70 per cent of the project. The debt package is expected to include $US3 billion from commercial banks, and the organisation does much of its banking with NAB. A further $US4 billion is expected to be supplied by the export credit agencies of nations such as South Korea, the US and Japan.
Roy Hill reiterated that securing the debt package was central to the project taking the next step.
The debt is planned to be finalised before Christmas, and first ore shipped before the end of 2015.
JPMorgan recently predicted that Roy Hill would go ahead, but with a minimum six-month delay.
"In our view, a debt package of that order of magnitude may be difficult to secure without a further potential sell-down of the project," it said in a research note.
Mining companies often record several years of losses before they come into production, and Roy Hill has proved no different, reporting a loss of $315 million in the latest year.
Hancock Prospecting is a shareholder in Fairfax Media, the publisher of the Herald.
Frequently Asked Questions about this Article…
Roy Hill investors recently contributed an additional $624 million to keep the project moving forward until debt funding can be secured.
The Roy Hill project is an iron ore mining venture led by Gina Rinehart's Hancock Prospecting. The main investors include Korean steel giant Posco, Japan's Marubeni, and China Steel, with Hancock Prospecting owning 70% of the project.
The Roy Hill iron ore project is a partnership between Gina Rinehart's Hancock Prospecting, Korean steel giant Posco, Japan's Marubeni, and China Steel.
Investors contributed an additional $624 million to keep the Roy Hill project progressing while awaiting the finalization of a $7.4 billion debt package. This funding is crucial to meet current commitments and continue project activities.
Shareholders were asked to contribute more funds because the $US7 billion debt package, expected to be secured by March, was still in progress, necessitating further payments to maintain project momentum.
The Roy Hill project is in the process of securing a $7.4 billion debt package, which includes $3 billion from commercial banks and $4 billion from export credit agencies in countries like South Korea, the US, and Japan. The debt is expected to be finalized before Christmas.
Hancock Prospecting, Gina Rinehart's main company, owns 70% of the Roy Hill project.
The Roy Hill project aims to ship its first ore before the end of 2015, contingent on securing the necessary debt funding.
The debt package for Roy Hill is expected to be finalized before Christmas, with the first ore shipment anticipated before the end of 2015.
Securing the debt package is challenging due to its magnitude. JPMorgan has suggested that a further sell-down of the project might be necessary to secure the funding.
Securing the debt package may be challenging due to its magnitude, and there might be a need for a further potential sell-down of the project.
No, like many mining projects, Roy Hill has recorded losses in its early years, reporting a $315 million loss in the latest year.
Roy Hill reported a loss of $315 million in the latest year, which is common for mining companies before they start production.
Hancock Prospecting, led by Gina Rinehart, is the main company behind the Roy Hill project, holding a 70% ownership stake.
JPMorgan has provided analysis and predicted that the Roy Hill project would proceed, albeit with a minimum six-month delay.
JPMorgan has predicted a minimum six-month delay for the Roy Hill project, primarily due to challenges in securing the necessary debt funding.
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