Cash-strapped miner China Hanking Holdings plans to spend more than 90% of its initial public offering (IPO) proceeds on repaying loans, leaving only a fraction of the capital raised for business expansion and upgrades of existing facilities. The miner reported CNY905.5 million of borrowings by the end of August, with more than 80% from non-bank institutions. Interest rate expenditure has risen as the company began to borrow from non-bank institutions. Hanking’s bank borrowings this year were less than half of those last year, when it secured CNY475 million of bank loans at an interest rate of 6.07%, without turning to non-bank institutions. Hanking has four iron ore mines, boasting 140 million tons of total probable reserves. Their total output grew more than 10% last year to 1.3 million tons. The miner also recorded a net profit last year of CNY444 million, up from CNY140 million in 2009, when demand for commodities declined because of the global economic downturn. It achieved a 73% profit margin in the first half.