FMG considers IPO for iron ore joint venture with Baosteel
Fortescue Metals Group, the third-largest iron ore miner in Australia, is studying a listing of its joint venture with Baosteel in either Hong Kong or Shanghai.
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It is studying the feasibility of an initial public offering of FMG Iron Bridge, its joint venture iron ore project with Baosteel in Western Australia, its ceo Neville Power said in a media briefing at the Boao Forum held in south China’s Hainan province on Sunday April 7.
He said proceeds raised from the possible IPO would be used to fund the project’s development, without disclosing further details, according to Chinese media reports.
Total resources at the Iron Bridge project had increased to 5.2 billion tonnes from 2 billion tonnes, the company said in December.
Iron Bridge comprises the North Star and Glacier Valley deposits, and the West Star and South Star exploration projects, in Western Australia.
FMG has an 88% stake in the project, while Baosteel holds the remaining 12%.
The former’s own expansion projects are also on track, supported by growth in Chinese steel demand.
The miner’s production capacity is set to hit 155 million tpy by the end of 2013, and up to 90% of the output will go to the Chinese market, Power said.
FMG expects to deliver 100 million tonnes of iron ore to China this year, up more than 60% from that of 2012.