Firstly, a large portion of the money provided is in prepayment...

Firstly, a large portion of the money provided is in prepayment of ore so it is effectively providing $1 of useful money for every $5 they lend. So basically divide the amount lent by ansteel in two to get the real amount lent to gbg. If gbg went to the ASX they wouldn't get prepayments so the whole thing would be a proper loan, only issue is instead of getting $0.30 per share they would get $0.15. Effectively we got diluted the same as we would have on the ASX but ansteel should knock a few hundred million off the debt ledger at year end.

I think another cause for borrowing so much money is that they are hiding some of the cost in capex