IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 11 Jun 2014 | Removal date: open ended
Still in force

Financial assistance in foreign market

On 11 June 2014, the Japan Bank for International Cooperation (JBIC) signed an AUS 280 million (approx. USD 263 million) overseas investment loan agreement with Australian Mitsui Iron Ore Development Pty. Ltd. The company is a subsidiary of Japanese Mitsui & Co., Ltd.
The loan finances its capacity expansion of the West Angelas Iron Ore Mine project as well as the replacement and expansion of the port facilities at Cape Lambert utilized for exporting its iron ore.
 
Whilst the loan supports Japanese Mitsui & Co.'s overseas business activities in Australia JBIC also noted: 'Since steel is used extensively for various products, including automobiles and construction materials, iron ore, raw material for steel, is one of the fundamental metal resources for Japanese industries. .... This loan, which will lead to an increased supply of high grade iron ore to Japan, will contribute to securing the stable and long-term supply of mineral resources to Japan.'
 
Overseas investment loans
JBIC provides direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank's website under overseas investment loans.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

141 Iron ores & concentrates, other than roasted iron pyrites
2601 Iron ores and concentrates, including roasted iron pyrites.
260111 Nonagglomerated

Please report this page in case you detect an inaccuracy in its content.