Tuesday, January 13, 2009

China Minmetals To Acquire SA Chromite Miner

Reports from China suggest that the China Minmetals Corporation is planning to acquire 70% of the shares of Vizirama, a South African chromite mining company based in Townlands. Vizirama possesses the exploration rights for mineral resources in the region and the acquisition will enable Minmetals to secure the leading position in the first phrase of exploration.

The acquisition will be conducted by Minmetals' subsidiary, Minmetals Development Co Ltd with a total investment of several million USD. The National Development and Reform Commission has already granted the investment and the further approvals are needed from the Ministry of Commerce and the State Administration of Foreign Exchange.

China Minmetals Corporation has had a long-standing interest in South African mineral resources and has a number of investments in the region, including the USD 6.5 million acquisition of the Naboom ferrochrome mine in 2007, a three-year contract with Palabora Mining Company to purchase 2 million tons a year of iron ore and an office in South Africa to handle the export of chrome concentrate and manganese to China.

Source: Steel guru

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