Grange to sell stake in Southdown

Grange Resources has put a 30 per cent stake in its $2.6 billion Southdown magnetite project near Albany up for grabs.

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Announcing the appointment of Deutsche Bank as corporate advisor this morning, Grange managing director Russell Clark said the group was considering a number of options to come up with the capital it needs.

"We are looking to sell at least a 30 per cent stake of the project, providing a terrific opportunity for a suitable strategic investor requiring long term offtake of a premium quality pellet feed," he said.

Grange and its joint venture partner, Japanese trading house Sojitz (30 per cent), want to have project funding for Southdown secured by the end of the year.

The project includes the Southdown mine, a 100km slurry pipeline to Albany, a desalination plant and 280km electricity transmission line. Grange also wants to build a 7mtpa pellet plant in Malaysia.

Grange is 66 per cent owned by China's Shagang International Holdings.

Grange shares were 2¢ higher to 52¢ in early trade.