James Hardie Industries NV (JHX) reconfirmed its commitment to the Asbestos Injuries Compensation Fund (AICF) after the Australian Government announced it would provide a loan of up to $160 million to the NSW Government that would go towards a loan facility of up to $320 million to be made available by the NSW Government to meet a short-term funding shortfall. The company said the provision of the loan facility to the AICF does not reduce James Hardie’s obligations under the Amended and Restated Final Funding Agreement (AFFA).

CEO, Louis Gries, said based on its fiscal year 2010 results to date the company expects to make a contribution to the AICF, in accordance with the agreement, in 2010.

“We look forward to working with the NSW Government, the AICF and the Australian Government to finalise the facility,” Mr Gries added.

James Hardie said, under the FFA, it contributes a maximum of 35% of its annual net operating cash flow to the AICF.

Since the AICF was established in 2007, the company has contributed $302 million to the fund, in addition to $293 million being provided to the Medical Research and Compensation Foundation in 2001.

James Hardie said its is also contributing $500,000 a year for 10 years towards medical research into the prevention, treatment and cure of asbestos diseases, and $75,000 a year for 10 years for an education program to inform home renovators of the risks associated with asbestos.

As at 1040 AEDT, James Hardie shares were up 22c to $7.40.