KEY POINTS
- Ivanhoe Atlantic plans ASX listing to support critical minerals.
- The listing provides access to Guinea’s Nimba iron ore project.
- Friedland’s IPO aligns with Rio Tinto’s Simandou expansion timeline.
According to reports, mining tycoon Robert Friedland intends to float Ivanhoe Atlantic, his privately held iron ore company, on the Australian Securities Exchange (ASX) the following year.
Ivanhoe Atlantic to make ASX debut with major IPO plans
According to the Australian Financial Review, the action is intended to raise money for the purchase of important mineral projects in Australia, many of which have been disregarded during the recent decline in price that has affected the lithium and other vital metal industries.
Australian investors will be exposed to Ivanhoe Atlantic’s Nimba iron ore project in Guinea through Friedland’s most recent foray into iron ore and key minerals through the initial public offering (IPO), which is expected to take place before June.
According to mining.com Rio Tinto’s (ASX, LON: RIO) intentions to start production at the neighbouring Simandou project by late 2025 are anticipated to align with the IPO.
Formerly known as High Powered Exploration (HPX), Ivanhoe Atlantic functions independently of Friedland’s flagship company, the Toronto-based C$25 billion ($18 billion) Ivanhoe Mines (TSX: IVN).
Ivanhoe Mines holds a majority interest in the Platreef project for platinum-group metals, nickel, copper, and gold in South Africa, as well as the Kamoa-Kakula copper complex and the Kipushi zinc mine in the Democratic Republic of the Congo.
Nimba iron ore project poised to expand Guinea’s exports
Mining.com stated that Ivanhoe Atlantic intends to transport Nimba’s high-grade ore over an existing rail route through Liberia, potentially reducing logistical and financial expenses in contrast to Simandou, which needs a 650-kilometer railway to a port in Guinea.
In September 2019, Ivanhoe Atlantic purchased the Nimba deposit. A 2015 analysis by the United States Geological Survey estimates that Nimba has around one billion tonnes of high-grade iron ore, with peak production projected to yield 30 million tonnes per year.
Bronwyn Barnes, CEO of Ivanhoe Atlantic, stressed that the Australian market is perfect for the initial public offering. According to the Australian Financial Review, Barnes stated at a Sydney event on Tuesday that “the Australian market has a strong understanding of the iron ore industry.”
The IPO will encourage investments in other vital minerals, even if iron ore will continue to be the primary emphasis. Nickel, cobalt, and scandium—all on the U.S. vital minerals supply list—are of interest, according to Barnes.
Friedland has a history of creating major mining projects, such as the Kamoa-Kakula copper mine, the Voisey’s Bay nickel mine in Canada, and the Oyu Tolgoi mine in Mongolia.
