{"id":34687,"date":"2009-10-29T07:04:10","date_gmt":"2009-10-29T11:04:10","guid":{"rendered":"http:\/\/www.pehub.com\/?p=54058"},"modified":"2009-10-29T07:04:10","modified_gmt":"2009-10-29T11:04:10","slug":"cic-investing-700-million-into-iron-mining-international","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/34687","title":{"rendered":"CIC Investing $700 Million Into Iron Mining International"},"content":{"rendered":"

HONG KONG (Reuters) – China Investment Corp (CIC), a near-$300 billion sovereign wealth fund, plans to invest $700 million in Hopu-backed Iron Mining International Ltd, a source told Reuters on Thursday.<\/p>\n

The investment would be the Chinese fund’s second involvement this week in a Mongolian mining deal as it shifts its investment strategy to natural resources from financial institutions.<\/p>\n

CIC’s [CIC.UL] investment in Iron Mining follows a $500 million deal with SouthGobi Energy Resources (SGQ.V) earlier this week.<\/p>\n

The fund’s investments in Mongolian mining companies come after a recent change in Mongolian mining laws that have paved the way for foreign investment. Iron Mining International, part-owned by private equity firm Hopu and Singapore state investor Temasek [TEM.UL], plans to list shares in Hong Kong late this year or early next year, hoping to raise up to $1 billion.<\/p>\n

CIC’s deal with Iron Mining International involves a $500 million convertible loan, with an option to increase the loan to $700 million, according to the Wall Street Journal.<\/p>\n

CIC has asked Iron Mining, which owns and operates a Mongolian iron ore mine, to add partly-owned China International Capital Corp as an underwriter for the IPO, along with Credit Suisse, which was an early investor, the Journal reported.<\/p>\n

Hopu, a China-focused private equity firm run by Fang Fenglei, chairman of Goldman Sachs’ (GS.N) securities joint venture in China, jointly invested $300 million with Temasek in International Mining, previously known as Lung Ming Investment Holdings Ltd.<\/p>\n

Credit Suisse (CSGN.VX) invested $120 million in the company at the time and private equity firm Clarity invested $20 million, according to the source, who was not authorised to speak publicly about the deal.<\/p>\n

China’s robust economic growth and commercial property boom has made it the world’s largest iron ore buyer, consuming more than half its traded ore.<\/p>\n

CIC, with more than $290 billion under management, has put more money into commodities, real estate and infrastructure to hedge against the risks of medium- and long-term inflation and a fall in major currencies.<\/p>\n

Chairman Lou Jiwei said on Wednesday that CIC has invested about half its $110 billion in available funds, mainly in publicly traded assets, and has enjoyed “not bad” returns so far this year.<\/p>\n

By Michael Flaherty and Farah Master
\n(Editing by Ian Geoghegan)<\/p>\n

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HONG KONG (Reuters) – China Investment Corp (CIC), a near-$300 billion sovereign wealth fund, plans to invest $700 million in Hopu-backed Iron Mining International Ltd, a source told Reuters on Thursday. The investment would be the Chinese fund’s second involvement this week in a Mongolian mining deal as it shifts its investment strategy to natural […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-34687","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/34687","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=34687"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/34687\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=34687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=34687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=34687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}