HSBC extends finance to mining projects

Global bank HSBC has indicated its Australian business will expand its project finance capability for the mining industry by appointing new head of Project Finance Metals and Mining, Alan Park.

Sydney-based Park will lead the development of HSBC’s mining-focused project finance business both globally and for the Asia-Pacific region in concert with the institution’s project finance team and resources and energy group.

The move shows that Australia is a priority market for HSBC due to the number of mining projects underway. The bank has also pointed out the significant export and investment flows between Australia and emerging markets such as China.

“Australia is the second largest project finance market in the Asia-Pacific and we see high potential for market growth,” said Chris Russell, head of Global Banking at HSBC Bank Australia.

“There are currently 102 mining projects at an advanced stage of development in Australia, with a record capital expenditure of over A$230 billion. This is an increase of 34 percent in just six months and a 74 percent increase year on year.”

The announcement is welcome news considering the scarcity of capital available due to economic woes elsewhere in the world.

“We’re supporting Australia’s largest names in infrastructure and mining as they expand their operations offshore as well as our regional client base as they seek opportunities to invest in Australia,” said James Cameron, HSBC’s head of Project Finance, Asia-Pacific.