It brought in new investors yesterday when it raised $60 million in a private share placing in Hong Kong. The business, which has its main listing in London and is chaired by Mr Hambro, is understood to have favoured Hong Kong because its iron ore mines are close to the Chinese border and will feed Chinese steel smelters. Asia Resources Fund and CEF Holdings bought stakes in the iron ore division, valuing it at about $800 million.

Petropavlovsk’s Kuranakh iron ore mine is expected to begin production soon and will produce about 900,000 tonnes of ore this year. The $60 million raised in the placing yesterday will help to finance expansion up to about ten million tonnes a year by the end of 2013. The Hong Kong listing would raise further funds for expansion up to 20 million tonnes by 2015.

Petropavlovsk, formerly Peter Hambro Mining, is the third-largest gold producer in Russia. Valued at £2.2 billion, it is a candidate to join the FTSE 100 when the index is reconstituted after tonight’s close.

Sourced from www.timesonline.co.uk