U.S. mining equipment makers set to capitalize on Australian mining project

|By:, SA News Editor

Caterpillar (CAT), Joy Global (JOY) and other U.S. mining equipment manufacturers may reap more than $500M in fresh sales after the Export-Import Bank approved nearly $700M in government-backed financing for the A$10B Roy Hill iron ore mining project in Australia.

The decision marks a victory for the struggling mining equipment makers, whose sales have plunged during the past year, and a defeat for U.S. miners such as Cliffs Natural Resources (CLF), which had argued the loan would hurt their interests.

CAT CEO Doug Oberhelman said in October that 75% of the company’s projected $11B drop in sales this year will come from the division which primarily sells mining equipment.