MARKETS

Resourcehouse IPO called off

QUEENSLAND billionaire Clive Palmer’s planned IPO of Resourcehouse on the Hong Kong Stock Exchange has reportedly been put on hold indefinitely.

Staff Reporter

A roadshow for the planned $US3 billion ($A3.3 billion) float, which is being managed by UBS and Macquarie Group, was due to kick off today.

However, an unnamed source told Bloomberg the roadshow had been delayed indefinitely after the HKEx requested more details regarding the sale of a stake in Resourcehouse’s $A7.5 billion China First project in Queensland’s undeveloped Galilee Basin.

Last week, China Metallurgical Group Corporation agreed to take a 10% equity interest and provide 70% of the finance for China First.

It is believed that the HKEx wants this deal to be finalised before the Resourcehouse IPO can go ahead.

The China First thermal coal project will export 40 million tonnes per annum, with first output in 2013.

MCC has committed to buy a minimum of 30Mt of the 40Mt produced from the mine per annum over a 25-year life.

Resourcehouse also owns magnetite iron ore deposits in Western Australia and South Australia, and oil and gas interests in WA and Papua New Guinea.

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