Qld: Beattie coy on comment on federal offer

AAP General News (Australia)
08-06-2001
Qld: Beattie coy on comment on federal offer

BRISBANE, Aug 6 AAP - Queensland Premier Peter Beattie was today hesitant to comment
on reports a $100 million federal "kickstart" package was being considered for a proposed
magnesium project.

The $1.3 billion Stanwell magnesium project near Gladstone is on hold after Australian
Magnesium Corporation (AMC) fell $100 million short of raising $680 million in equity
funding last month.

The company had already secured more than $900 million in debt funding from a banking consortium.

The Australian Financial Review today reported federal cabinet was considering an "interest
deferred" loan to kickstart the AMC project.

The Queensland government has said an offer of $50 million in infrastructure funding
remained on the table.

Mr Beattie said he was disappointed the federal government had leaked the story.

He refused to reveal details of the discussions between the state and federal governments
and AMC.

"I am limited in what I can say because the shares are trading on the stock market,"

he told a news conference.

"My government has done everything and will continue to do everything to make this a reality.

"We will continue to have ongoing discussions with the company."

Mr Beattie said he understood federal cabinet had given the $100 million package for
AMC a "general tick in general terms".

AMC shares today lost 10 cents or nearly seven per cent to $1.34.

AAP bja/sc/jnb/cd/sb

KEYWORD: AMC

2001 AAP Information Services Pty Limited (AAP) or its Licensors.