Energy Insider: Iron Ore Futures Crash After Regulatory Investigation
In today’s Caixin energy news: Chinese regulators announce an investigation of the iron ore spot market as part of crackdown on hoarding and speculation; Tianqi Lithium Completes Sale of Stake in World’s Largest Hard Rock Lithium Mine; Ganfeng Lithium raises $ 631 million in private placement in Hong Kong.
Iron ore futures tumble as regulators launch spot market investigation
China’s benchmark iron ore futures fell for a second straight session on Tuesday after regulators launched a spot market investigation and pledged to crack down on hoarding and speculation. The National Development and Reform Commission (NDRC) said on Monday it had joined the state’s market watchdog to inspect the spot market at the Beijing Iron Ore Mall. Regulators have pledged to closely monitor prices and investigate malicious speculation. The most-traded iron ore contract on the Dalian Commodity Exchange fell 5.2% to 1,110 yuan ($ 171.75) per tonne on Tuesday, after falling 9% on Monday.
Syngenta takes a first step towards STAR Market listing
Syngenta Group Cie., the agriculture giant owned by China National Chemical Corp., took a step towards a possible IPO on the Nasdaq-type STAR market of the Shanghai Stock Exchange. Swiss company Syngenta has started a so-called “tutoring” process with investment banks for the planned offering, the company said in a statement on Monday. Syngenta could be valued at up to $ 60 billion, Bloomberg reported.
Tianqi Lithium completes the sale of its stake in Greenbushes
from China Tianqi Lithium Corp. said the sale of part of its stake in the world’s largest hard rock lithium mine to Australia’s IGO Ltd. will be finalized by the end of June. The Australian nickel and gold miner agreed in December to buy 49% of Tianqi Lithium Energy Australia, a wholly owned subsidiary of Tianqi Lithium, for $ 1.4 billion. The deal will give IGO a 24.99% stake in the Greenbushes lithium mine and a 49% stake in the Kwinana lithium processing plant in Tianqi, both in Western Australia.
Railway equipment maker CRCHI raises $ 572 in STAR market list
China Railway Construction Heavy Industry Co. Ltd. (688425.SH) debuted on the Nasdaq-like STAR marketplace in Shanghai on Tuesday in an initial public offering of 3.7 billion yuan ($ 572 million). China Railway Construction Corp. spin-off Ltd. (601186.SH), the company is mainly engaged in the design, R&D, manufacture, sale, rental and service of punching machines, rail transit and other specialized equipment.
Ganfeng Lithium raises $ 631 million in private placement
Ganfeng Lithium Co., Ltd. (002460.SZ) said it has completed a private placement of 480.44 million H shares with at least six investors at a price of HK $ 101.35 ($ 13.10) per share. The company has raised approximately HK $ 4.854 billion ($ 631 million) under the offering, 80 percent of which is slated to be used in expanding the capacity of overseas lithium projects in China. over the next two years. Potential investments in lithium resources may relate to lithium ore, brine and clay.
World’s first 1 million kilowatt hydroelectric power station goes into operation
The No.14 generating unit at China’s Baihetan hydropower plant, known as the world’s first 1 million kilowatt capacity hydropower plant, started operating on Monday. Baihetan, in Yunnan province (southwest China), is the second largest dam in the world after the Three Gorges Dam. The plant, with a total installed capacity of 16 million kilowatts, is expected to generate more than 62 billion kilowatt-hours of electricity per year when all of its 16 generating units come on stream in mid-2022.
Sinochem International ready to strip Yangnong Chemical
Sinochem International (Holding) Co., Ltd. (600500.SH) stated that it fulfills all the prerequisites to sell its stake in Jiangsu Yangnong Chemical Co. Ltd. (600486.SH) at Syngenta Group. The transaction is part of an asset reshuffle to consolidate agrochemicals business at Syngenta following the mega-merger of Sinochem and ChemChina.
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