earlier this year from dc1009 A WA iron ore developer claims Chinese manufacturers are winning contracts on local projects partly because they offer vendor finance at half the rate charged by Australian banks. As the Federal Government investigates claims local companies are pressured to buy Chinese supplies, managing director of Pluton Resources Tony Schoer said China's success was driven largely by commercial realities. Mr Schoer said many local resources companies had little choice but to use Chinese vendor finance, for which money was lent by the manufacturer to buy their products, usually at half the cost of local funds. Pluton expects to borrow up to $600 million in vendor finance for a plant at its Irvine Island project, off WA. "The Chinese are willing to take bigger risks and provide cheaper finance," Mr Schoer said. considering we now have double mine life--reduced capex--and probable cheap finance from chinese sources an offtake agreement and already 12mill paid id say this delay wilst not ideal isnt a disaster
PLV Price at posting:
21.6¢ Sentiment: LT Buy Disclosure: Held
