Financial Delay Affecting Roy Hill Project

The Roy Hill Project, an iron ore construction and mining project under Gina Rineheart is facing a delay in its project completion. Rinehart is head of one of the country’s formidable mining families.

Sources say that the company is currently negotiating a legal feud among its family members. Aside from this, its financiers are also anxious about the rising cost of equipment and overheard.  Demand for iron ore and competition from other rival projects are also giving the company limited options.

The project’s goal is to complete everything by the end of 2014 so that the company can take advantage of a possible slide in iron prices. But with the delays in loan financing, the company must be able come up with at least $7 million in funds to reach its goals. It’s looking into sources in other countries like China, Japan and South Korea.

The reports also say that Rinehart, who is dubbed as one of the world’s richest woman by Forbes Magazine, is talking to other contractors about risk-sharing a potential cost escalation.

According to an investment house analyst, what the Roy Hill Project needs is lots of time and money to build ports and railway lines that would have a finite capacity of construction resources.

Roy Hill refuses to make any comments about its current financial delays but its chief executive recently said in a company speech that funding approval should come by the end of this year, or at the close of the financial calendar in 2013.

The company is the fourth fourth-largest iron ore miner, under the Rinehart family’s Hancock Prospecting Pty Ltd.