Global resources company MMG has secured $1bn funding to develop the Dugald River project in Queensland, Australia.

Under the agreement, China Development Bank (CDB) and Bank of China, Sydney (BOC, Sydney) are providing a debt facility for the total amount for a period of 13 years.

The Dugald River funding facility will be available for draw down until 27 June 2016 with final repayment scheduled on 26 June 2026. Repayment will begin three years after the drawdown date with interest only payable until this time.

MMG chief executive officer Andrew Michelmore said, "We are pleased to take the next step in the development of the Dugald River project, with financing arrangements negotiated at very competitive terms. The project is now ready for final approval by the Board."

The board of MMG will announce a final investment decision following endorsement that is scheduled to occur in December 2012.

Michelmore said that Dugald River will be developed to meet the expected supply gap created by future mine closures combined with low investment in zinc development and exploration projects in recent years.

"On the demand side, the continuing industrialisation and urbanisation of developing economies will drive demand growth over the long term," Michelmore said.