Bank reverses itself in Bucyrus deal

MADISON, Wis. (AP) — A federal bank has taken the first step in approving loan guarantees that will allow a $600 million deal with South Milwaukee-based Bucyrus International Inc.

U.S. Sens. Herb Kohl and Russ Feingold jointly announced the Export-Import Bank’s unanimous vote Wednesday.

Last month the bank voted to deny the loans to Reliance Power Ltd., in India, citing environmental concerns over its coal mine and coal plant project. The company needed the approval to purchase mining equipment from Bucyrus.

After the vote, Bucyrus officials warned losing the deal could result in 1,000 people in 13 states losing their jobs.

The bank agreed to reconsider the decision and on Wednesday it approved environmental aspects of the deal. A final vote is expected later this year.