Brockman requests for trading halt on Sinosteel speculation
Brockman Resources requested for trading halt today pending the release of a response to market speculation on its deal with Chinese steel giant Sinosteel Corp.
It was reported in Beijing that Sinosteel is one of the Chinese metals and mining companies that have submitted objections to China's economic planner and Ministry of Commerce against the Australian government's planned 40 per cent resource super profits tax (RSPT).
Last month, Brockman Resources signed memorandum of understanding with Sinosteel Corp for offtake from its Marillana iron ore project in Western Australia's Pilbara region.
The agreement with Sinosteel involves the purchase of up to 10 million tonnes a year of production over an initial five-year period that could be worth more than $6 billion.
Brockman Resources is expected to make an announcement on May 24, when its shares should begin trading again.
"The company expects the halt to end upon release of an announcement outlining the terms of the agreement," said Brockman Resources in a statement to the ASX.
The Chinese report suggested that Sinosteel Corp could postpone the feasibility study for the agreement until issues on the RSPT have been clarified.
It was announced last month that a definitive feasibility study into Marillana is due for completion in the third quarter of calendar 2010.
Sinosteel Corp.'s ore imports account for 10% of China's total ore imports.
Brockman Resources shares closed at $2.61 on Thursday.