ANM`s Ann:Finalises $100M Commonwealth guaranteed loan

Document date:  Wed 26 Feb 2003
Published:  Wed 26 Feb 2003 09:49:26
Document No:  151506
Document part:  A
Market Flag:  N
Classification:  Progress Report 

AUSTRALIAN MAGNESIUM CORPORATION LIMITED      2003-02-26  ASX-SIGNAL-G

HOMEX - Brisbane                                                      

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Australian Magnesium Corporation Limited (AMC) has finalised a $100
million subordinated loan and fixed interest rate hedging facility
with the ANZ Banking Corporation, supported by a guarantee from the
Commonwealth Government.

This ANZ Loan Facility, supported by the Commonwealth guarantee,
represents another important element of AMC's funding plan for the
Stanwell magnesium plant as outlined in AMC's October 2001
prospectus.

It complements the $100 million commitments provided by Newmont
Australia Limited, earlier this year, and the Queensland Government.

The ANZ facility will be used to support the development of the
97,000 tonne per annum Stanwell plant, currently under construction
near Rockhampton in central Queensland.

Chief Executive Officer, Rod Sharp, said the Commonwealth and
Queensland Governments had been instrumental in AMC's development
over the past decade, commencing with their research and development
support for the CSIRO-inspired and patented 'AM Process' for making
magnesium.

"We share the Commonwealth and Queensland Government's vision of a
light metals industry for Australia to take advantage of magnesium's
special attributes to help make cars lighter, cheaper and safer," he
said.

AMC's involvement with the CSIRO extends to a strategic research
alliance and a royalty agreement on magnesium production.

AMC and the CSIRO are also participants in the Cooperative Research
Centre for Cast Metals Manufacturing (CAST) in the research and
development of new downstream die casting techniques and services.

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