finally job taken by samsung s&t, page-9

http://www.smh.com.au/business/mining-and-resources/roy-hill-project-clears-forge-collapse-hurdle-20140226-33hrx.html

Roy Hill project clears Forge collapse hurdle
February 26, 2014

Gina Rinehart's Roy Hill project has found a solution to the hole that was left by the collapse of mining services firm Forge Group.

Samsung C&T is the major construction partner on Roy Hill, and sub-contracted the $1.47 billion contract out to Forge and Duro Felguera in December.

The deal was Duro Felguera's first big contract in Australia, but quickly became a nightmare when Forge stumbled its way into administration earlier this month.

The contract - which was to build a processing plant for the massive iron ore project - was officially terminated last week, but the Spanish company said overnight that it had a struck a deal to complete the work with Samsung.

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In a press release published in Spanish, Duro Felguera said the new deal was finalised on Tuesday, and would see Samsung ''directly assume the scope corresponding to Forge Construction Ltd''.

Seoul-based Samsung also published a statement today, saying all works were under control and were still on schedule, despite the Forge hiccup.

The quick resolution will be a relief for Roy Hill executives, who are racing to complete the project in time to begin exports in September 2015.

A $US7 billion debt package is yet to be locked down, but was recently forecast to be finalised before the end of February by Japanese company Marubeni, which is a joint venture partner in Roy Hill.

If correct, that would mean the debt package could be signed this week.

BNP Paribas and Australia's NAB are understood to be heavily involved.

The Roy Hill project involves the construction of a mine, railway and port facilities, and is planned to produce up to 55 million tonnes of iron ore each year.

The railway continues to take shape, with Perth firm BGC today winning its third contract on the project in recent months.

BGC will be paid more than $60 million to supply ballast for the railway, and that contract comes after a $120 million contract for work on the Roy Hill aerodrome, and another $420 million cheque for earthworks and other construction on site.

Roy Hill is a joint venture between Korean company Posco, Japanese company Marubeni, the China Steel Corporation and the majority owner; Ms Rinehart's Hancock Prospecting.

Hancock Prospecting is a significant shareholder in Fairfax Media, the owner of this publication.



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