Fortescue Metals, Australia's no. 3 iron ore producer, is looking to acquire coal assets to help develop its stronghold outside of iron ore, and is planning to list its magnetite assets in Hong Kong before the end of 2011.
Neville Power, Fortescue's chief operating officer, speaking on the sidelines of the Boao Economic Forum in southern China, said the Perth-based firm was also in talks with potential buyers from Asia and the Middle East to sell its magnetite assets.
"We don't see those magnetite assets being developed by our current balance sheet. We would consider everything from trade sale right through to IPO and listing, joint venture relationships," Power said. Confirming the Australia-listed firm's plans to seek a dual listing in Hong Kong, Power said the financial hub would be the most likely option over Shanghai and it was not considering London or Toronto. Australia is the world's biggest iron ore exporter, accounting for around 38 percent of global trade, but its output is dominated by global mining giants Rio Tinto and BHP Billiton .
Fortescue in February expressed its intention to bid for Mongolia's Tavan Tolgoi mine, the world's largest untapped coking coal deposit. But the firm was not among the final short-list announced in March, which includes global heavyweights ArcelorMittal , Vale and Xstrata.
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