Mainland's second-largest iron ore trader also seeking strategic investors Sinosteel Corp, China's second-largest iron ore trader, plans to raise US$500 million by listing its mining assets overseas next year and bringing in strategic investors. 'We aim to launch the initial public offering in the second half of next year, probably in Hong Kong,' said Liu Andong, Sinosteel's chief accountant, on the sidelines of an industry conference. Investment banks including Morgan Stanley, Goldman Sachs, UBS and China International Capital Corp pitched to be the state-owned company's listing sponsors but no decision has been made yet, Mr Liu said. Sinosteel has also begun talks to bring in strategic investors, he said. 'They may come from overseas as well as domestic but one major criteria is that they also have resources,' he said. Sinosteel plans to fold five billion yuan worth of assets with annual sales of US$1 billion into the listing unit. One key asset is the up to 700 million tonnes of minerals reserves, including iron ore and chrome ore, in China and overseas. About 200 million tonnes of those reserves are in China, Mr Liu said. Its Channar Iron Ore Mine in Paraburdoo, Australia, has reserves of 200 million tonnes with an annual production capacity of 10 million tonnes. Sinosteel also operates a joint venture with South Africa's Limpopo Province Development Corp to develop a chrome ore mine with an output of 400,000 tonnes and a smelting plant producing 120,000 tonnes of ferrochrome a year. The mine has chrome ore reserves of 45 million tonnes which up to five times as much as China's stocks. The Beijing-based company will continue its strategy to expand overseas to secure more resources, chairman Huang Tianwen said. The company has also explored opportunities or held talks to invest in overseas resources in India, Brazil, Peru, Argentina, and Gabon. In May, Sinosteel signed an initial agreement with Australia-listed Jupiter Mines for a potential iron ore joint venture in the Yilgarn mineral field of Western Australia. In September, it signed a memorandum of understanding with Australian miner PepinNini for the joint development of the Crocker Well and Mount Victoria uranium deposits in South Australia state. Sinosteel is also in talks to invest in an integrated iron ore and steel project in India with an initial investment of US$200 million with potential partners such as mainland steel giant Baosteel Group and Indian steel firm Tata Steel, Mr Huang said. He said Sinosteel does not have a plan to list the entire company on the stock market but it intends to re-organise into five units - mining, carbon, refractory materials, ferroalloy and machinery equipment manufacturing - for separate listings over the next three to five years.