Fortescue mulls IPO in Shanghai or Hong Kong for JV project with Baosteel

Neville Power, CEO of Australia's third-largest iron ore producer Fortescue Metals Group, stated at the 2013 Boao Forum that the company is studying the feasibility of an initial public offering in Shanghai or Hong Kong for Hong Kong-based FMG Iron Bridge, its joint venture with Chinese steel giant Baosteel in Western Australia, according to Chinese media reports.

 

The two companies previously consolidated their Northstar and Glacier Valley assets in Western Australia's Pilbara region to form FMG Iron Bridge. Fortescue owns 88 percent of the subsidiary company, while Baosteel has a 12 percent stake.

 

Total proven reserves of the project amount to 5 billion mt. In 2012, Fortescue exported about 60 million mt of iron ore to China. The Fortescue CEO said that the company expects to produce 155 million mt of iron ore this year, 90 percent of which will be delivered to China.