24 Aug 2009 08:20

MCC awaiting CSRC approval for planned listing

Shanghai. August 24. INTERFAX-CHINA - The China Securities Regulatory Commission (CSRC) announced on Aug. 21 that it will review state-run China Metallurgical (Group) Corp.'s (MCC) initial public offering (IPO) application on Aug. 26.

According to the company's prospectus, MCC plans to issue up to 3.5 billion A-shares on the Shanghai Stock Exchange, and, at a later date, issue up to between 2.61 billion and 3 billion H-shares on the Hong Kong Stock Exchange. The company said that whether MCC lists in Hong Kong still depends on regulatory approvals, market conditions, and investor sentiment.

"If the CSRC gives the green light on Aug. 26, it is expected that MCC's shares will debut on the Shanghai Stock Exchange in September at the earliest," an MCC employee, who asked to remain anonymous, told Interfax on Aug. 24.

MCC looks to raise $4 billion through its planned A-share and H-share listings, and it is working on a five-year plan in order to efficiently use the funds raised through the listings, he said.

Previous domestic media reports said that MCC would list all company assets excluding its papermaking operations, such as EPC (engineering, procurement and construction), resource development, equipment manufacture and real estate development.

MCC owns mining rights to various metallic deposits containing over 3 billion tons of ore reserves, including the Saindak Copper and Gold Mine and the Duddar Lead and Zinc Mine in Pakistan, the Ramu Nickel and Cobalt Project in Papua New Guinea, and a copper mine in Brazil. It also has a 20 percent stake in CITIC Pacific Mining's Sino Iron Project in Western Australia and a 51.06 percent stake in Huludao Nonferrous Metals Group in northeastern China's Liaoning Province.

MCC also owns the Cape Lambert Iron Ore Project in the Pilbara region of Western Australia and won a tender to develop the Aynak Copper Mine in Afghanistan.