Grange considers TAS and WA sales

Company News

Grange Resources Limited (ASX:GRR) has revealed that it's considering selling part of the Southdown iron ore project in Western Australia or the Savage River iron ore mine in Tasmania.

According to Dow Jones Newswires CEO Russell Clark believes selling a stake would assist the magnetite iron ore pellet producer in funding the Southdown export venture, estimated to cost up to $2.6 billion.

Mr Clark says by selling down up to 30 per cent of Grange's 70 per cent owned Southdown project the debt and equity requirements are also reduced by the same amount.

While no formal asset sale process is currently underway the report says JPMorgan values the Southdown asset at $275 million which compares with Grange's market value of about $600 million.

In the first half of the 2011 calendar year Grange Resources posted an interim profit of $58 million.

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