#baosteel

Wiskind and Baosteel held the first clean enclosure material technology exchange meeting

World’s Biggest Mining Firm Makes First Ore Trade on a Blockchain

Mining conglomerate BHP has completed its first trial trade of iron ore using blockchain technology.

As reported by Reuterson Monday, the roughly $14 million deal with Chinese metals giant Baoshan Iron & Steel Co Ltd. (Baosteel) was conducted on a platform created by Canada-based startup MineHub Technologies. The MineHub platform was used to process contract terms, exchange documents online and…

A company part of General Nice Group (俊安集团), the Chinese coal and iron trader that owns Isua iron mine in Greenland, has been ordered into liquidation by Hong Kong's High Court, after a petition by Australian creditors. The company, General Nice Resources (Hong Kong) Ltd (俊安资源(香港)有限公司), is not directly connected to the Greenland project, but there is an indirect link: Isua is owned (through a Jersey company) by another Hong Kong entity, General Nice Development (Hong Kong), which has a 40% stake in the company that has just fallen into liquidation. Thus, while the Greenland mine's ownership and management remains unaffected, a subsidiary of its owner has just been ordered to wind up.

The liquidation petition was launched by KordaMentha, an Australian insolvency firm appointed by General Nice as receiver of Pluton Resources, the owner of an iron mine on Cockatoo Island, WA. KordaMentha are said to be owed several million AUD for expenses incurred during their time at Pluton, where General Nice have a controlling stake. Pluton has seen a good amount of drama in the last couple of years, with disputes between General Nice, a Chinese partner, a Chinese client and Australian contractors, including multiple, at one time simultaneous, receiverships, a police intervention, and litigation in Hong Kong and Australia, up to the Supreme Court. To the extent what I've read about Pluton can be summarised in any meaningful way, General Nice claim they've been pumping funds into Pluton to keep it alive despite low iron prices, while everybody else claims General Nice owe them money.

Last year, another creditor, Baosteel subsidiary Ningbo Steel (宁波钢铁), had asked for General Nice Resources HK to be wound up. General Nice acknowledged the debt, but sued back, arguing Ningbo Steel were trying to hurt their reputation. Ningbo eventually dropped the liquidation petition and apparently got paid, but GN's case against Ningbo went on for some time. In a nutshell, GN say Ningbo's petition was defamatory and frivolous as they were going to pay anyway, while Ningbo say the petition was justified since they got paid thanks to it.

But there's more. General Nice Group, including the Greenland licence-holder, is ultimately largely owned by its chairman, Cai Suixin 蔡穗新, and his family. (I wrote an overview of the Group some time ago.) Another recent Hong Kong court order targeted Cai directly. In late October, a High Court judge forbade Cai from removing assets from Hong Kong (or to keep at least US$20m within HK). The order was requested by a Mainland bank.

And still more. Besides that Mainland-related injunction against Cai, two more banks are trying to claim debts, according to Oriental Daily News. A month ago, Société Générale filed bankruptcy petitions against Cai Suixin and his sister Cai Suirong 蔡穗榕, who's also involved in various companies in the Group. And in yet another case, last week HSBC petitioned the High Court attempting to recover mortgaged property in the Le Cachet (嘉逸轩) development in Happy Valley (跑马地) from Cai Suirong.

General Nice's Arctic foray is not easy to interpret. The takeover of the Isua mine, which has no development perspectives in the medium term, and the (thwarted) attempt to buy a derelict naval base in Greenland (something I'll be writing about soon), don't seem to make much sense as commercial investments for a company that could use some profits. Perhaps the value of these Arctic moves is favour with state entities (including SOEs) related to them, rather than directly generated profits.

[Update, Dec 30th: General Nice Group chairman Cai Suixin 蔡穗新 and high executive Lau Yu 柳宇 are resigning from their posts at the Group's Hong Kong-listed company, "for personal reasons and hoping to devote more time to other business." Their replacements come from Huarong 华融 Asset Management, a large state-owned company specialised in distressed assets, that is said to be in the process of restructuring some other General Nice assets.

The Hong Kong-listed company is not related to the Isua mine in Greenland. The company gone into liquidation discussed in this post is a shareholder in it. I explained the (rather colourful) history of the listed arm here.

Ningbo Steel (宁波钢铁) has withdrawn a petition to wind up Loudong General Nice Resources, General Nice Group's HK-listed company, soon after the latter reacted with claims for $100m as compensation for damages to its reputation. Ningbo Steel, a subsidiary of state-owned steel giant Baosteel, is claiming some $1.2m in unpaid debts. For some background on Ningbo Steel, check my post from a few days ago.

In other news, it has emerged that a sixth of Loudong General Nice is now owned by Zhuguang Holdings (珠光控股), a property developer led by Zhu Qingyi 朱庆伊 (also known as Zhu Qingsong/Chu Hing Tsung 朱庆凇). Mr Zhu and his elder brothers, Zhu Layi 朱拉伊 and Zhu Mengyi 朱孟依, possess a diversified business empire whose origins go back to the early 2000s. The Zhus stem from the Chaoshan 潮汕 region of Guangdong province, just like General Nice's chairman Cai Suixin 蔡穗新. Zhu Mengyi is rumoured to be have been banned from leaving the country amid a corruption crackdown targeting collusion between real estate developers and officials, notably disgraced Guangzhou Party secretary Wan Qingliang 万庆良.