Chinese steel mills face higher ore costs
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China's business press carried the following stories on Tuesday. China.org.cn has not checked the stories and does not vouch for their accuracy.
Chinese steel mills face higher ore costs -- China Business News
Chinese steel producers face higher iron ore costs as major ore exporting countries hike taxes and export tariffs, China Business News reported Tuesday.
Indian Finance Minister Pranab Mukherjee recently announced an increase in the export tariff on iron ore to 15 percent from 10 percent. India's move aims to give domestic steel makers easier access to iron ore supplies. Crude steel production in India is expected to reach 124 million tons by FY 2012/2013, more than a double its current capacity of 54 million tons.
Meanwhile, Australia, another major ore exporter, has announced plans to increase taxes on mining giants. According to the so-called Resource Super Profits Tax, the Australian government will levy a 40 percent tax on the country's resource companies including Rio Tinto and BHP Billiton.
Australia and India rank first and third on the list of countries from which China imports iron ore.
Media buys stake in Egyptian air-conditioning maker -- Sina.com.cn
Chinese home appliance manufacturer Media (stock code: 000527) announced Tuesday it is to acquire a 32.5-percent stake in Egypt's leading air-conditioning company Miraco for US$57.48 million.
When the transaction completes, Media will be Miraco's second largest shareholder. According to a company statement, the deal will help Media expand its operations in the African market and further lower its manufacturing costs.
On April 28, Media signed an agreement with United Technologies Corp. (UTC) to purchase a 32.5 percent stake in Miraco from the company. After the deal, UTC will remain the largest shareholder with 37.1 percent.
Miraco is a leading manufacturer and distributor of air-conditioning products. In 2009, Miraco's total assets stood at US$110 million and the company made a US$20.6 million net profit.
The deal requires the approval of the Guangdong Provincial Department of Commerce and China's National Development and Reform Commission.
Agricultural Bank may file for IPO this week -- China Securities Journal
Agricultural Bank of China (ABC), one of China' big four state-owned banks, plans to file applications for an initial public offering (IPO) to the Shanghai and Hong Kong stock exchanges this week, China Securities Journal reported, citing unnamed sources.
ABC plans to raise US$30 billion through the IPO. The bank is scheduled to meet its cornerstone investors this week.
According to a list of IPO underwriters released previously by the bank, China International Capital Corp. (CICC), Goldman Sachs, Morgan Stanley, JPMorgan, Deutsche Bank and Macquarie have been chosen to handle the H-share IPO; CICC, CITIC Securities, Galaxy Securities and Guotai Junan Securities have been chosen to handle the A-share IPO on the Chinese mainland.
