KfW IPEX-Bank finances export of German machine technology for open-pit mines in Australia

Frankfurt am Main (ots) -

- German machine technology plays a critical role in the expansion
of Australian iron ore producer Fortescue Metals Group Limited -
export volume of EUR 140 million
- Mining orders safeguard jobs at German suppliers
- New technology contributes to environmental protection

KfW IPEX-Bank is extending a loan in the equivalent of EUR 140
million to the Australian mining company, Fortescue Metals Group
Limited (Fortescue), to support its significant expansion project.
Fortescue, Australia's third-largest iron ore producer is planning to
use German machine technology to progressively increase its annual
iron ore production capacity from 55 million tonnes to roughly 155
million tonnes . Fortescue signed agreements with two German
exporters to expand its existing mobile mining fleet. The Wirtgen
Group, based in Windhagen/Rhineland-Palitinate, working in
partnership with Fortescue, developed an innovative surface miner
tailored to suit Pilbara iron ore deposits. The successful
development and application of the surface miner, will see Wirtgen
delivering several surface miner to Australia. Surface miner are
drivable, high-performance machines used for the removal of rock
layers in open-pit mines. The technology, contributing significantly
to environmental protection, will be used to efficiently mine iron
ore in Fortescue's Chichester Hub mining area, located in the Pilbara
region in the north west of Western Australia. In addition, nine new
excavators will be delivered by Caterpillar Global Mining HMS, a
manufacturer based in Dortmund. "Our financing supports the German
export economy: these mining agreements play a key role for capacity
utilisation in the development, production and service areas of the
two German suppliers Wirtgen and Caterpillar Global Mining HMS", said
Markus Scheer, member of the Management Board of KfW IPEX-Bank, upon
closing the deal. The loan, with a term of about nine years, is
covered by an export credit guarantee of the Federal Republic and is
structured in US dollars.

Fortescue is Australia's third largest producer of iron ore and,
as the world's fourth largest participant in the seaborne iron ore
market, is one of the leading international iron ore producers. Its
business activities extend from exploration, development and mining
to the export of iron ore around the world, in particular to Asia.

Illustrating pictures are available on the website of KfW
IPEX-Bank in the press section under "press material".

About KfW IPEX-Bank GmbH

KfW IPEX-Bank is responsible for international project and export
finance within KfW Bankengruppe. Its function of providing financing
to support the German and European economy is derived from the legal
mandate of KfW Bankengruppe. Its prime focus is on medium- and
long-term lending to support the export economy and develop economic
and social infrastructure, and for environmental and climate
protection projects. KfW IPEX-Bank operates as a legally independent
group subsidiary and plays a major role in fulfilling the promotional
mission of KfW Bankengruppe. It has 531 employees (as of 31 December
2011) and is represented in the key economic and financial centres
around the globe.

Contact:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: E-Mail: thomas.krick@kfw.de
Tel. 069 7431-8454, Fax: 069 7431-9409, E-Mail:
info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de