Grange Resources to sell 30% stake in Southdown magnetite project

Grange Resources has appointed Deutsche Bank as corporate advisor to sell at least a 30% stake of its Southdown magnetite project in southwest Australia in a bid to secure funding.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

“We are looking to sell at least a 30% stake of the project, providing a terrific opportunity for a suitable strategic investor requiring long-term offtake of a premium-quality pellet feed,” Russell Clark, md of the Australian Securities Exchange-listed company, said in an announcement on Wednesday June 20.

More than $150 million have been spent over the past five years on the development of the Southdown project, which has an expected lifespan of more than 30 years, he said.

Southdown has 1.2 billion tonne of resources and close to 400 million tonnes of reserves, with a designed production capacity of 10 million tpy of premium magnetite concentrate at 69.4% Fe content.

Southdown is a joint venture between Grange Resources and Japan’s Sojitz Resources & Technology (SRT). Grange Resources holds a 70% stake while SRT holds the remaining 30%.

SRT is jointly owned by Sojitz Corporation and Kobe Steel, the fourth-largest Japanese steelmaker.

Kobe Steel indirectly holds a 9.9% stake in Southdown and will buy 1.5 million tpy of pellet feed from the project.

Grange Resources previously engaged Standard Chartered as debt advisor to the joint venture.

What to read next
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
Low supply, strong demand to spur scrap prices higher in Feb, market says
US deep-sea ferrous export prices from the East Coast to Turkey have plateaued, with a Turkish mill purchasing a cargo at prices stable from the last-reported sale
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.