Manufacturing News

EFIC provides $50m loan for Orica nitrate plant

Australian export credit agency, Export Finance and Insurance Corporation, has provided to Orica a ten-year, $50 million direct loan to assist with Orica’s investment in the construction of an industrial-grade ammonium nitrate plant in Indonesia by PT Kaltim Nitrate Indonesia.

As a supplier of explosive-related mining services around the world, one of Orica’s main activities is the manufacture and sale of industrial-grade ammonium nitrate, a key ingredient in mining explosives.

Demand for ammonium nitrate is driven by the mining industry and Orica currently operates seven plants worldwide.

“At a time when the commercial market has limited appetite for longer tenor financing, export credit agencies like EFIC were able to meet our particular financing needs in a way that the commercial banks alone could not,” said Orica director of finance, Noel Meehan.

“Working with EFIC has been a very positive experience – they were very responsive to our timing and commercial requirements and helped us to find a financing solution that suits us both.”

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