Bucyrus International Inc may lose a $310-million order for mining machinery from Reliance Power because of a decision by the US Exim Bank against providing loan guarantees for the project, the Wall Street Journal reported.
Quoting Tim Sullivan, CEO of the South Milwaukee mining equipment manufacturer, the report said that the decision is equivalent to "throwing 1,000 jobs in the ditch."
Bucyrus has expected the order to create or protect 984 jobs in 13 US states, the WSJ report said. The mining equipment was supposed to be used for a coal mine that is to provide for a new power plant in Madhya Pradesh.
Sullivan was quoted as saying that the order from Reliance was contingent on the guarantees, and he feared Reliance would turn to rival suppliers from China or Belarus. Bucyrus International Inc designs and manufactures mining equipment for surface and underground mining. Bucyrus surface equipment is used for mining coal, copper, iron ore, oil sands and other minerals. Its underground equipment is primarily used to mine coal.