Loan Denial Could Cost Cat Millions

September 24, 2013

Caterpillar’s mining division could lose up to $650 million in sales if Minnesota and Michigan lawmakers convince U.S. Export-Import Bank to deny financing for an Australian mine, according to the Milwaukee Journal Sentinel.

Cat would supply more than $500 million worth of equipment for the Roy Hill mine, which would produce 55 million tons of iron ore per year. The rest of the money would go toward installation costs. Lawmakers argue the loan would help establish a foreign iron ore mine larger than the entire U.S. industry. According to the article, Caterpillar supports the funding, as denial of the loan would hurt the company's chances at winning the equipment order.

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