ANZ has thrown its weight behind Baosteel and Aurizon Holdings’ push to establish a big Pilbara iron ore business after today signing a support agreement with the China Development Bank.
On a day when all focus is on the expected signing of a Free Trade Agreement between Australia and China, ANZ made the most of Chinese President Xi Jinping’s visit to Canberra to sign the memorandum of understanding with the CDB as well as the proponents of the West Pilbara iron ore project, acquired by Baosteel and Aurizon through their $1.4 billion takeover of Aquila Resources this year.
The MoU details cooperation for the potential development of West Pilbara, which comprises a 40 million tonnes a year mine, a 289km railway line and a new port at Anketell.
It follows a similar deal, also struck today, between ANZ and CDB, to work together to match corporate partners and project investors, as well as provide advice and funding.
“This agreement reflects the trust developed between our organisations over the last few years,” ANZ chief executive Mike Smith said.
“It provides the framework for cooperation and creates a new direct channel between Australian and Chinese companies, projects and investors.
“The development of deeper, more sophisticated cooperative financing links between Australia and China has the potential to significantly increase foreign investment between the two nations.”
Cathryn Carver, ANZ’s Perth-based senior managing director of international and institutional banking, added: “Should the West Pilbara Iron Ore Project proceed, it has the potential to unlock development of mineral resources across this region, which previously have been stranded by a lack of infrastructure.”
The two banks first signed an MoU in 2009 and subsequently expanded the scope of cooperation to include New Zealand in 2010.
Since then, ANZ has helped CDB to participate in landmark Australian commercial loan syndications for deals from companies including Woodside Petroleum and the Newcastle Coal Infrastructure Group.
Source: The West Australian