China’s Wuhan Steel plans listing of overseas mines

SHANGHAI, March 8 (Reuters) – China’s third-largest steelmaker, Wuhan Iron and Steel Group Corp (WISCO), may list its overseas iron ore assets as part of its next five-year plan, the China Securities Journal reported on Tuesday.

Wuhan Steel is focused on developing its recently acquired iron ore mines to bring them to full production over the next three to five years and may package these assets into a holding vehicle for listing, WISCO’s President Deng Qilin told the paper in an interview.

Deng said it was still too early to determine where the assets would be listed, or if they would be injected into its current listed subsidiary, Wuhan Steel and Iron Ore Ltd (600005.SS: Quote), on the Shanghai exchange.

Deng also said he has not ruled out making further acquisitions, but that the firm’s main priority now was to develop mines recently acquired in Canada, Brazil, Australia, Liberia and Madagascar.

The Chinese steelmaker, which stepped up overseas acquisitions during the financial crisis, currently imports more than 85 percent of its iron ore needs, but aims to be able to supply all its demand in three to five years to end its reliance on foreign suppliers such as Rio Tinto (RIO.AX: Quote)(RIO.L: Quote), BHP Billiton (BHP.AX: Quote)(BLT.L: Quote) and Vale (VALE5.SA: Quote).

Deng complained on Saturday that China continued to have no say in setting global iron ore prices despite being the world’s biggest consumer of the key steelmaking ingredient.

China is furiously consuming iron ore and other commodities to meet industrial and export demand as the country grows at a breakneck pace. The demand has sent commodities prices soaring, leading China to play an increasingly strategic role in the acquisition and development of resource projects.
Continue with the Article here at Rueters  (Reporting by Fayen Wong, editing by Jonathan Hopfner)