Brazilian iron ore miner Ferrous Resources is rumoured to be planning a London listing which will value the company at £3.2 billion.
London newspaper, the Daily Mail, reported on Thursday that Ferrous has appointed JP Morgan Cazenove and Deutsche Bank ahead of the flotation. Ferrous’ directors collectively own a total stake in the company of 20 per cent.
The news follows comes after a number of high-profile proposed London listings were pulled, including fashion retailer New Look which was pulled a matter of days after being announced.
Ferrous operates in the Iron Quadrangle region of Minas Gerais in south-eastern Brazil. The company’s target is to produce in excess of 50 million tonnes per annum of saleable iron ore products.
According to the company’s own figures measured, indicated and inferred iron mineral resources are 2,958 Mt grading 35.6% Fe at a cut-off grade of 25% Fe. In addition, the company’s properties contain an estimated target potential of a further 1,592Mt (± 30%) in areas where there has been insufficient sampling to date to define a mineral resource.
Ferrous is also developing a private sea port in Brazil to export its iron ore products. The mines are located 300 km from the sea, close to the nation’s capital, Brasilia.
Last week it was reported that Indian state-owned miner NMDC is looking at taking a 50 per cent stake in Ferrous’ Brazilian operations, which will be diluted to 40 per cent on flotation.
Ferrous’ executive chairman is Gordon Toll, who has a background with both Rio Tinto and BHP Billiton and was previously chairman of Australian iron ore miner, Fortescue.
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