Gina Rinehart's AUD 10 billion Roy Hill iron ore project aims to start construction on its mine in mid 2013, later than hoped, as assessments by potential lenders are expected to stretch into next year, the project's spokesman said this morning.

The Roy Hill partners, targeting 55 million tonnes a year of iron ore, had aimed to start producing in late 2014, but a sharp slide in iron ore prices has spooked financiers, delaying funding and construction, which is expected to take two years.

The project's chief, Barry FitzGerald, cancelled a long-scheduled appearance at a mining conference in Sydney on Tuesday to meet with bankers, and his speech was given instead by the project's spokesman.

Roy Hill general manager of external affairs Darryl Hockey said at the conference said that "It may be well into 2013 before this evaluation process is complete.”

The project is 70% owned by billionaire Gina Rinehart's Hancock Prospecting, and 30% owned by a consortium led by South Korean steel giant POSCO, with Japanese trading company Marubeni, South Korea's STX, and Taiwan's China Steel.

Source - Reuters

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