On March 14, Inner Mongolia Baotou Steel Union, the listed company of Inner Mongolia region-based Chinese steelmaker Baotou Iron and Steel (Baogang Group), announced that that it will issue up to 1.63 billion additional Class A shares to up to 10 investors (including its parent company Baogang Group). The price per share will be as much as RMB 3.68 ($0.56), and the total money raised will not be less than RMB 6 billion ($0.913 billion).
The capital raised will be used to acquire 100 percent of Barun Mining Co., Ltd, currently owned by Baogang Group, and the mining rights to the western Baiyun Ebo iron ore deposit in Inner Mongolia. The Baiyun Ebo mine has 1.4 billion mt of iron ore reserves.