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
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