ANNOUNCEMENT 11 Jun 2014In June 2014, the government of Japan announced new support for the overseas expansion of domestic firms.
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The Japan Bank for International Cooperation press release: Loan for Expansion of West Angelas Iron Ore Mine and Related Infrastructure in Australia
Available at: http://www.jbic.go.jp/en/information/press/press-2014/0611-23885
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
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.