Samsung C&T Wins A$5.9 Billion Order for Roy Hill ProjectKyunghee Park
Samsung C&T Corp., South Korea’s second largest builder, won a A$5.9 billion ($6.1 billion) order from Australian billionaire Gina Rinehart’s Roy Hill Holdings Pty., its single biggest contract.
The company will build an iron ore processing plant, a 340-kilometer (211 miles) railway line and port facilities, Seoul-based Samsung C&T said in an e-mailed statement. Construction will be completed by November 2015.
Samsung C&T has already won 7.5 trillion won ($6.7 billion) in orders this year, achieving 45 percent of its annual target of 16.6 trillion won. Roy Hill plans to build the iron ore mine in Western Australia’s Pilbara region and is set to begin production in late 2015.
Shares of Samsung C&T gained 0.7 percent to close at 68,500 won in Seoul. The stock has advanced 9.4 percent this year, compared with a 0.2 percent decline in the benchmark Kospi index.
The plant will be able to process 55 million tons of iron ore a year, Samsung C&T said. The railway will connect to the port, which will have two berths and container yards, it said.
Gina Rinehart, Asia’s richest woman, plans to build the iron ore project estimated to cost A$10 billion, according to Rinehart’s closely-held Hancock Prospecting Pty.
Roy Hill, a unit of Hancock, is in the process of raising A$7 billion in project finance and hopes to complete funding by the end of the year, Chief Executive Officer Barry Fitzgerald said in an interview earlier this month.
Hancock, which owns 70 percent of the mine, plans to ship 55 million metric tons annually from Roy Hill. South Korea’s Posco and STX Corp., Japan’s Marubeni Corp. and Taiwan’s China Steel Corp. own the remaining 30 percent.