Miners turn to Asian contractors for funding

Vancouver - Miners who can't get financing for new projects from banks or traditional equity investors because metals prices have collapsed are turning to an alternative source: the engineering and construction companies, many from China and South Korea, who actually build their mines.

Several North American and Australian miners are in talks with engineering, procurement and construction (EPC) companies to take equity stakes or bring along banking partners to provide debt funding in projects in return for the EPC group winning a contract.

China's NFC and South Korea's Posco Engineering & Construction are among the companies pursuing these deals as they look to make up for business lost because of slowing infrastructure growth at home.