Ex-Im Bank Wants to Invest in Foreign Steel Production Again

Reuters ^ | 8 November 2001 | NA

[Hamiltonian]

SYDNEY, Nov 8 (Reuters) - Australia's Austeel Pty Ltd project on Thursday said the Export-Import Bank of the United States had confirmed its interest in providing US$325 million to fund the proposed steel mill complex at Newcastle, north of Sydney.

Austeel chief executive officer John Elmore said a letter of interest from the U.S. government's Ex-Im Bank said it was willing to consider providing the maximum coverage allowed under OECD arrangements on export credits.

The A$5.5 billion plus Austeel project would involve mining and downstream processing of iron ore to produce 3.85 million tonnes a year of finished steel products.

The integrated project is planned for development at Cape Preston, south of Dampier, in Western Australia, and at Newcastle, New South Wales.

The project is being promoted by Australian mining group Mineralogy Pty Ltd, with European steel giant Corus Group Plc (quote from Yahoo! UK & Ireland: CS.L) to act as operator. It is also backed by Italian steel producer Danieli & C. SpA .

[Hamiltonian]

This will further jeopardize permanent jobs in steel production in deference to a couple of years of employment for those that will fabricate the machinery to be purchased with ExIm backing.....................
Assuming, of course, that any of the machinery is indeed fabricated by Americans.

Perhaps there has been a rush to get the money to Austeel ahead of H.R. 2506:

COMMERCE AND TRADE

SEC. 513. (a) None of the funds appropriated or made available pursuant to this Act for direct assistance and none of the funds otherwise made available pursuant to this Act to the Export-Import Bank and the Overseas Private Investment Corporation shall be obligated or expended to finance any loan, any assistance or any other financial commitments for establishing or expanding production of any commodity for export by any country other than the United States, if the commodity is likely to be in surplus on world markets at the time the resulting productive capacity is expected to become operative and if the assistance will cause substantial injury to United States producers of the same, similar, or competing commodity: Provided, That such prohibition shall not apply to the Export-Import Bank if in the judgment of its Board of Directors the benefits to industry and employment in the United States are likely to outweigh the injury to United States producers of the same, similar, or competing commodity, and the Chairman of the Board so notifies the Committees on Appropriations.¹

¹Weasel words.

[Hamiltonian]

Bump

[Willie Green]

Oh just wonderful.</sarcasm>

The United States subsidizes expanded steel production in Third World (???) nations such as Australia, while Dubya blatantly subverts our national security by insisting that our domestic producers "restructure" and consolidate (shut down) our own production.

What in the world did we ever do to deserve such treasonous and corrupt "leadership"?

[max61]

So what does Willie think about Motorola announcing plans to drop $6.6 billion into China?.

---max

[Willie Green]

Is that an additional $6.6 billion?

I recall seeing that story posted some time ago, and heaven knows I've posted many articles anouncing domestic Motorola headchops since then.

Globally, the high-tech telecom electronics market is in the dumpster.
Just the same, Motorola's actions should also be considered treasonous. I hope they lose their @$$es.

[Hamiltonian]

Afternoon bump

[Hamiltonian]

Not to mention the fact that the "exports" being subsidized by ExIm aren't even being produced by American companies. Apparently the only thing American in these transactions is the money.