Gindalbie Metals Ltd
(ASX:GBG) says the value of service contracts and orders at its Karara Iron Ore project will reach a total of $1 billion in coming months.
The iron ore miner says recent orders for new equipment and infrastructure have lifted the total commitments for Karara to around $700 million.
Gindalbie says a further $300 million of new construction, equipment and services contracts are expected to be awarded in coming months.
The company says the award of these contracts demonstrates its confidence in the project and commitment to progress full steam ahead at Karara, despite the heat surrounding the Federal Government’s Resources Super Profits Tax.
Gindalbie says the company and its partner Ansteel are currently finalising the security arrangements and final documentation for a US$1.2 billion loan facility and $175 million equity raising to underpin the construction work.
Gindalbie Metals fiscal 09 profit came to $26.22 million, down on the year before.
