Roy Hill Calls for More Investors

Hancock Prospecting is calling for more investors for its Roy Hill project. The call has intensified speculations that the $10-billion project is facing tough times and possibly, delays.

The company, owned by mining magnate Gina Rinehart, has already sold 30 percent of its rail, mine and port project this year. Some of the buyers include Marubeni, China Steel Corporation, and Posco. The entire project produces 55 million tonnnes per year.

Industry observers say that it is unlikely that Hancock Prospecting will sell more as this would result to Rinehart losing majority control of the project. They added that the remainder of the project’s expenses would likely be funded by bank debts.

John Klepec, however, said that the company is considering selling more of the project. Klepec is chief development officer of Hancock Prospecting.

Klepec said the company welcomed the entry of new venture partners for Roy Hill last March. He added that there are still opportunities to tap for further equity investors and that those interested should not hesitate to approach the company.

Barry Fitzgerald said that Roy Hill planned to secure funding approval before 2012 is over. The project also targets to mine its first ore by 2014. Fitzgerald is the chief executive of the Roy Hill project.

In similar news, Hancock Prospecting has inked with the federal government an enterprise migration agreement and has appointed Skilled to arrange job seekers for the Roy Hill project. Skilled is a workforce services company.

Anticipating the backlash that may possibly ensue due to hiring of 1,700 foreign workers, Hancock said it is also looking for 8,500 workers during the construction phase.