Friedland considers floating African iron ore company on ASX

Mining magnate Robert Friedland is said to be planning to list his privately owned iron ore company, Ivanhoe Atlantic, on the Australian Securities Exchange (ASX) next year. 

The move, the Australian Financial Review reported, aims to raise capital for acquiring critical minerals projects in Australia, many of which have been overlooked amid the recent price downturn affecting lithium miners and other critical metals projects.

The IPO, expected before June, marks Friedland’s latest effort to expand his influence, this time leveraging Australia’s expertise in iron ore and critical minerals. The move will offer Australian investors exposure to Ivanhoe Atlantic’s Nimba iron ore project in Guinea. 

The listing would also coincide with Rio Tinto’s (ASX, LON: RIO) plans to start production at the neighbouring Simandou project before the end of 2025.

Ivanhoe Atlantic, previously known as High Powered Exploration (HPX), operates independently of Friedland’s flagship enterprise, the C$25 billion ($18bn) Ivanhoe Mines (TSX: IVN).

The Toronto-based company owns the Kamoa-Kakula copper complex and the Kipushi zinc mine in the Democratic Republic of the Congo (DRC). It also has a majority stake in the Platreef platinum-group metals, nickel, copper and gold project in South Africa.

Unlike Simandou, which requires a 650-kilometre railway to a Guinean port, Ivanhoe Atlantic intends to transport Nimba’s high-grade ore via an existing rail line across the Liberian border. This shorter route could provide a logistical and financial advantage.

Ivanhoe Atlantic acquired the iron ore deposit in September 2019. Based on a 2015 report by the United States Geological Survey (USGS), Nimba holds roughly one billion tonnes of high-grade iron ore. At full-tilt, the mine is expected to produce 30 million tonnes a year.

Bronwyn Barnes, Ivanhoe Atlantic’s CEO, emphasized that Australia is the ideal market for the IPO. “The Australian market has a really strong understanding of the iron ore industry,” Barnes said during an event in Sydney on Tuesday, according to an Australian Financial Review report.

While iron ore will be the initial focus, the IPO will also support investments in critical minerals. Barnes highlighted a strong interest in nickel, cobalt and scandium, which are on the US critical minerals supply list.

Friedland has a proven track record in developing major mining projects, including Oyu Tolgoi in Mongolia, Canada’s Voisey’s Bay nickel mine and the Kamoa-Kakula copper mine.