Australia-based Gindalbie Metals‘ joint venture Karara Mining has secured a loan of $336m for the next phase of the Karara iron ore project in Western Australia.

The loan was provided by a Chinese banking syndicate, led by China Development Bank and Bank of China, which earlier provided a $1.2bn project loan facility.

The firm has also received $300m in bank guarantees from the China Development Bank.< /p>

Gindalbie’s managing director Tim Netscher said the increased project loan facility will support the previously announced $430m working capital requirements for the Karara project, for which Gindalbie raised equity contribution funds last year.

“The $300 million bank guarantee facility is being put in place to support the upgrade of rail infrastructure between Morawa and Geraldton Port by the line’s owner WestNet Rail,” Netscher said.