* Deal could value Altain Khuder around $1 bln - source
* Hong Kong IPO volume down about 82 pct through May
* Deal could be launched in Q4 of 2012
By Sonali Paul and Elzio Barreto
SYDNEY/HONG KONG, May 23 Mongolian iron ore
miner Altain Khuder plans to raise about $300 million through a
Hong Kong IPO, a source with knowledge of the matter told
Reuters, underscoring a push by mining companies from the
resource-rich country to tap stock markets to fund their
Altain Khuder's initial public offering marks the latest
Mongolian miner to tap global capital as the country looks to
develop its vast resources to supply its huge neighbour China.
The deal also reflects Hong Kong's appeal as a destination
for miners, particularly those that supply minerals resources to
China, even though the IPO market has had a rough start to the
The Wall Street Journal reported earlier that Altain Khuder
plans to raise $1 billion through a Hong Kong IPO.
Altain Khuder, which owns the Tayan Nuur iron ore mine in
southwestern Mongolia, has hired Bank of America and
Macquarie Group to manage the offer, two sources told
Macquarie has been named joint global coordinator for the
IPO, one of the sources said, adding that the deal would value
Altain Khuder at about $1 billion. The deal is expected to be
launched in the fourth quarter.
Altain Khuder has been exporting iron ore to China from its
Tayan Nuur mine since 2009 under a 15-year supply agreement with
a unit of China's Baoshan Iron & Steel Co (Baosteel)
Altain Khuder officials were not available for immediate
comment. Bank of America and Macquarie declined to comment.
The sources were not authorised to speak about the matter
publicly because the information is confidential.
Hong Kong IPOs have had a slow start to the year, with deal
volumes down about 82 percent through early May from same time
last year due to choppy equity markets, Thomson Reuters data
shows. High-end jeweller Graff Diamonds is expected to raise
about $1 billion in an IPO next week, which is set to be the
biggest Hong Kong floatation so far this year.
The news of Altain Khuder's IPO also comes at a time when
Mongolian miner Erdenes Tavan Tolgoi, which owns one of the
world's largest coking coal deposits, has pushed back plans for
an international stock market debut to early 2013.
The state-owned company's long-delayed London IPO is
expected to raise about $3 billion, with Macquarie also one of