Export Finance and Insurance Corporation (EFIC) has supported Leighton Asia in facilitating the lease of mobile mining fleet and equipment for use in its contract mining operations in Mongolia. Leighton Asia, a subsidiary of Leighton Holdings Limited, has been operating at the Ukhaa Khudag coal mine, in Mongolia, since 2009. Due to the company’s strong performance, Leighton Asia is expanding their capacity, which created a requirement for additional mining equipment.
“This transaction with the Leighton Group demonstrates EFIC’s ability to tailor our solutions in supporting Australian exporters,” says Peter Field, Executive Director, Origination and Portfolio Management at EFIC.
“To facilitate Leighton’s fulfilment of these contracts, which in turn has the potential to generate further revenue to Australia, we’ve structured a solution to enable the lease financing of mining equipment to Leighton Asia.”
To help the expansion of their mining operations, EFIC provided a US$81.7 million loan to BNP Paribas to help facilitate the lease of mobile mining fleet and equipment by Leighton Asia.
“Major projects like Leighton Asia’s Mongolian mining operations have significant and complex financing needs which cannot all be met by the commercial market. EFIC will work with all parties involved to provide the necessary support the Leighton Group requires to continue to expand its mining services business in Mongolia,” says Field.
According to Chief Financial Officer, Peter Gregg, EFIC understood the fundamentals of Leighton’s business. The support the Australian Government’s export credit agency had provided allowed Leighton’s further cement in its potions in the Mongolian mining industry.
“EFIC recognised Leighton’s track record of delivery and our diversified portfolio of work,” says Gregg.
“The direct loan facility will help us to deliver world class mining solutions to our clients, both through the quality of our people and the safety and reliability of our operations.”