December 03, 2008

Minmetals to purchase ferrochrome mine in Africa

It is reported that Minmetals Development, a listed subsidiary of Chinese trading house and steel mill equipment supplier Minmetals Group, plans to acquire exploration rights to the Naboom ferrochrome mine in South Africa at a cost of USD 6.5million.

Minmetals Development said the purchase is a good example of its strategy to develop upstream flows and overseas investments for the steel industry.

Minmetals spokesman said “Working with the South African mine’s owners, Mission Point and Versatex, we will further secure raw material supplies from overseas.”

China imports more than 90% of the chrome needed for its production of stainless steel. China’s economic planner NDRC has still to approve the purchase. If granted, Minmetals will carry out further development upon completion of feasibility studies.