Australian steelmaker BlueScope Steel Ltd has announced the sale of its New Zealand iron sands mining and export operation, the Taharoa Iron Sands Business, to Hong Kong-based Cheung Kong Infrastructure Holdings Limited (CKI) for a consideration of NZD $250 million (approx. US$174 million).
The Taharoa Iron Sands Business, owned and managed by New Zealand Steel Mining Limited (NZ Steel Mining), an indirect wholly-owned subsidiary of BlueScope Steel, produces and exports approximately 850,000 mt of iron sands per year. The main export markets are Japan and China.
The sale is expected to be completed by the fourth quarter of 2008, and is subject to conditions, including approval from New Zealand Overseas Investment Office.
Commenting on the acquisition, Cheung Kong Infrastructure Holdings Limited’s managing director Mr. H. L. Kam said, "The acquisition is poised to generate immediate revenue. We believe the Taharoa Iron Sands Business bears the hallmarks of steady income and good returns, characteristic of CKI's typical infrastructure investments. Furthermore, there should be considerable upside potential for the company as expansion plans are put into place."