We will most certainly be listing as a new entity, therefore an IPO is a given. It's necessary to drive investor interest from Chinese Pension Funds, QFII accredited Class-A investment funds, other Institutional investors, Retail investors and for existing SH.
Baowu will be a major SH. Senior management of which are also on the Board of the China Mineral Resources Group. The single transaction pipeline for all Resources & Minerals...a buying group to secure materials required for Chinese Manufacturing and likely African infrastructure development.
Baowu will also stump up the several billion required to get the project moving (if not already started) but they will want to reduce their debt burden through a listing. They'll also stand to make money off the SP growth - as the major shareholder. The overall cost of the funding will stretch into the deca-billions. The offtakers are not going to shoulder that burden alone. That's why you need to raise funds from the public. It states the private partner will entirely fund the project/s, but that private partner is likely to be the new listed entity.
The licenses are held by the project partnership, so there is no clear lead partner at this stage.
Also, the three mines (Avima, Badonda, Nabeba) will no doubt be expanded to include Nkout, Mbalam and others such as Bellinga. There's nothing controversial about it. The initial project scope has been agreed, signed, sealed and is now awaiting delivery. Those licenses belong to the partnership/consortium.
Twiggy needs that African ore. FMG only have one low-grade asset class, whereas BHP and Rio have multiple assets from the Pilbara's high-grade Fe. So I expect development of Bellinga will require an infrastructure partner to build out the connections.
I truly believe this is bigger than any of us comprehend. China needs African Resources. Africa needs Chinese investment & infrastructure.
Add to My Watchlist
What is My Watchlist?