Financial announcement boosts mining hub prospects
Financial announcement boosts mining hub prospects
Posted on Thursday, April 11 2013 at 12:21 PM
Cloncurry and Mount Isa have further improved the outlook of their property markets with the announcement this week of funding for a major zinc mining project.
Australian
Prime Minister Julia Gillard and China’s Premier Li Keqiang were present at the
singing of a financing support framework agreement for MMG Limited’s Dugald
River mining project.
The
agreement sets out a US $1 billion loan commitment from China Development Bank
to provide the funds over a 13-year term.
The
Duguld River project lies about 65 kilometres north of Cloncurry and represents
one of the world’s largest known undeveloped zinc deposits, according to MMG
Limited.
Kim
McKelvie, commercial and residential salesperson at Realway Mount Isa, says the
project is yet another boost for the region.
“We
are the hub here in a 500-kilometre radius for the whole of the mineral
province.”
McKelvie
sees the project as bolstering Cloncurry’s already firm real estate market.
“It
definitely will because more services will come out of Cloncurry. Every mine
that goes into an area creates more services even when there’s a high
percentage of fly-in, fly-out because there’s still a lot of services that have
to come from the local area.”
McKelvie
says the finance announcement is another good news story for a locality that
should continue to see positive investment growth.
“I
don’t know about the rest of Australia, I think they’re all going to hell in a
handbag but we’re doing alright.”
According
to McKelvie, Cloncurry is showing investors about seven per cent rental return
while Mount Isa reflects up to about nine per cent return.
“They
(investors) seem to be able to achieve around $400,000 and get rents of about
$550 per week, whereas in Mount Isa we can get a house for about $400,000 and
we get (weekly) rents at $650 to $700.”
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Financial announcement boosts mining hub prospects
Landlord’s right to draw down bank guarantees supported
Property market off and running
Data integration makes Queensland research a breeze
Sellers raise asking prices as market recovers
Property values are going up
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/wODR_vZaUwI/financial-announcement-boosts-mining-hub-prospects