Bucyrus Gets Ex-Im Bank's Support For India Coal Project
July 14 2010 - 4:32PM
Dow Jones News
The U.S. Export-Import Bank gave preliminary approval Wednesday
to $600 million of loan guarantees for an Indian power company that
wants to purchase coal mining equipment from Bucyrus International
Inc. (BUCY) as the bank reversed an earlier decision to withhold
its support because of environmental concerns.
The vote by the credit agency's board of directors sets in
motion additional financial, technical and environmental reviews of
Reliance Power's (532939.BY) application for loan guarantees. A
final vote on the request would follow once the reviews are
completed.
The bank's backing would allow a Reliance subsidiary to purchase
some $600 million worth of Bucyrus mining equipment that
Milwaukee-based Bucyrus estimates would create nearly 1,000 jobs in
13 U.S. states. Bucyrus Chief Executive Tim Sullivan praised the
board's decision.
"We are confident that the remaining steps of this process,
including the financial review, will be completed expeditiously in
order to allow Reliance Power to proceed," Sullivan said in a
written statement.
The Ex-Im Bank originally denied its support on the ground that
the equipment was to be used to feed a new coal-fired power plant
that will create carbon-dioxide emissions that contribute to global
warming.
But in the face of intense political pressure from Wisconsin's
Congressional delegation, the bank reversed itself last week and
invited Reliance to resubmit its application.
Bucyrus's stock was recently up 0.69% at $54.41.
-By Bob Tita, Dow Jones Newswires; 312-750-4129;
robert.tita@dowjones.com
Bucyrus (NASDAQ:BUCY)
Historical Stock Chart
From May 2024 to Jun 2024
Bucyrus (NASDAQ:BUCY)
Historical Stock Chart
From Jun 2023 to Jun 2024