The Australian Coal Council says the two Australian energy giants have been working together to help save Australia to the tune of more than $2.2 billion, with Nissan Finance managing the finance for the company.
The council says Agco Financials portfolio of loans and investment agreements includes the financing of the $9.5 billion Australian coalmine closure, and the construction of the country’s biggest solar farm.
Agco has also made a $2 billion loan to the government of Queensland for the construction and operation of the state’s largest solar farm, the $5.4 billion solar farm on the Sunshine Coast, and $4.2 million to the Federal Government for the purchase of the Port Hedland coal port.
Agcore Finance is also an investor in a $6.4 million investment in the Perth Power Station, a $9 million investment into a power plant in the south of the city, and a $1.9 million loan to WA’s coal miner, Western Power.
The ABC understands Agcore Financials’ first round of loan deals to Australian coal mines will see Agcore finance the construction, operation and operation costs of the Perth coal mine, with a second round of funding to the project expected to come in the second half of 2019.
In total, the loan is expected to be worth up to $7.6 billion.
The Agcore Australia fund was launched by the coal industry last year as a way to ensure the country is in the green.
The first round will be for the Perth mine to be completed by the end of 2019, with the remaining funds going to the construction phase.
The funding will be paid back over the next 15 years, and will be used to support the state coalmining industry and other local communities.
Agnetics chief executive officer Greg McKean said the funding will allow Agcore to grow its coal business.
“This funding will support Agcore’s continued success in the coal sector,” Mr McKeann said.
“It will also support our continued commitment to the region and the community.”
Agnetical’s portfolio of coal mining investments includes a $5 billion loan and an $8 million investment to the state-owned Coal Power Station in the South West, and to the Murray-Darling Basin coal port, which will be the world’s largest export coal terminal.
It also makes a $7 million loan in partnership with the Federal government for the new coal mine at Maitland, north-west of Adelaide.
Agcomity said the loans were the first of their kind for the state and are a key component of the company’s strategy to ensure it is able to continue to provide coal-intensive businesses with a secure, reliable and sustainable supply of coal for the long term.
AgComity’s coal loan, to be repaid over a 25-year period, was approved by the federal government in April.
“We have been very supportive of the coal business in Australia and have seen a very significant benefit from this loan, as the funds will be reinvested in the local economy,” Mr Mackean said.