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New World Development to Spin-Off Iron Ore Business

By Joel ScanlonFeb 1 2011

New World Development, a Hong Kong based property developer, is planning to spin-off a Chinese iron ore mining business. The new company will be majority owned by its own infrastructure unit NWS Holdings through a listing on the Hong Kong stock exchange.

The company currently holds mining rights to a large-scale open-pit iron ore mine in Lincheng county, Hebei. New World Development Managing Director Henry Cheng said that the spin-off company would establish its own profile as a separate listed entity with the ability to access the debt and equity capital markets to fund its operations, future developments and investment opportunities.

Tian Yuan plans to conduct the IPO in the second quarter and Citigroup Inc will be in charge of the offering. NWS has a 55.2% stake in Tian Yuan which owns and operates the Yanjiazhuang iron ore mine in Hebei. Yanjiazhuang Mine had proven and probable reserves of about 260 million tonnes.

This is the second time that the company has tried going public. The iron ore mining firm was to go public with a Hong King stock exchange listing last year to raise $522 million in May 2010 but decided against it due to the rather volatile market conditions at that time.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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Scanlon, Joel. (2019, March 19). New World Development to Spin-Off Iron Ore Business. AZoMining. Retrieved on April 27, 2024 from https://www.azomining.com/News.aspx?newsID=2895.
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