An export finance guarantee from EFIC helped the Wiggins Island Coal Export Terminal project
As worldwide demand for Australia’s coal exports increases, a group of coal companies joined forces to promote an industry owned and privately funded model to develop the Wiggins Island Coal Export Terminal (WICET) in the Port of Gladstone, Queensland.
WICET will be built in stages to meet industry demand, with 8 coal companies taking part in developing and financing the first stage. Xstrata Coal (on behalf of the Rolleston Joint Venture), Bandanna Energy, Yancoal Australia, Caledon Resources, Cockatoo Coal, Aquila Resources, Northern Energy Corporation and Wesfarmers Curragh - will be Stage One shippers.
The first stage of the ca. $3.0 billion industry-owned terminal is contracted to provide 27 million tonnes per annum (Mtpa) in additional export capacity for Queensland’s coal producers in the Bowen and Maryborough Basins.
There are 19 domestic and international financial institutions providing finance to the project under the senior secured loan facilities. In addition to their participation in the financing, Sumitomo Mitsui Banking Corporation (SMBC) will provide additional funding with the benefit of a US$100 million export finance guarantee from EFIC.
Peter Field, Executive Director, Origination and Portfolio Management, EFIC, said “This is a unique opportunity for EFIC to be involved in an Australian based export infrastructure project that will support the development of the coal export industry in Queensland. Where previously EFIC has not been called upon to support domestic projects, continued pressure on credit from global markets means we have been asked to work with a consortium of financiers to support this transaction.”
According to Phil Breaden, Commercial Director at WICET, this project will facilitate the timely development of important coal infrastructure. “Given the large financing requirement and the current volatility in financial markets, we are very pleased to have the support of EFIC and SMBC to complete the financing package.”
WICET is working with the Queensland Government, Gladstone Ports Corporation (GPC), and other infrastructure providers to deliver the project. Stage 1 of the terminal is expected to be complete mid-2014.
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