Grange Resources is adamant its $2.9 billion Southdown magnetite development near Albany will keep to a mid-2015 production deadline despite yesterday admitting to revised debt funding and commissioning deadlines for the project.
In its June quarterly report released yesterday, financial adviser Standard Chartered Bank cited "the difficult economic climate globally" in revealing debt funding was unlikely to be secured before the second quarter of next year.
Grange managing director Russell Clark admitted it had been "targeting the end of 2012". "But we've always said that would be dependent somewhat on the market conditions, so what we're saying is the market conditions aren't that good at the moment," he said.
The quarterly report said assuming the necessary financing was in place and the owners approved the project, commissioning of Southdown was now targeted for mid-2015. Despite the revised timeframes, Mr Clark said he was confident the project would be in production "another month or so" after that.Mr Clark last week returned from Korea and Japan where he has been promoting a 30 per cent Southdown stake to potential investors. He said interest had been strong as steel makers sought a higher quality product for their feed stocks. He said Grange also had received interest from investors in India and China.
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