August 30, 2008

ENRC to buys 50% stake in of Xinjiang Tuoli Taihang Ferro Alloy

Interfax reported that the Kazakh holding Natural Resources Corporation Plc is buying 50% of Xinjiang Tuoli Taihang Ferro Alloy Co. Ltd which specializes in ferroalloys for USD 14.5 million.

Xinjiang Tuoli Taihang Ferro Alloy is a major ferrochrome producer in China with production capacity of 120,000 tonnes a year. Most of the chrome used by the company is supplied by ENRC, about 70% of the raw materials used by the Chinese company.

ENRC in a release said that the stake is being purchased from Ma Yunpu, one of the main shareholders of the company. This deal will enable ENRC to strengthen its positions on the ferroalloy market.

Mr Johannes Sittard General Director of ENRC said that "We are inspired by our first acquisition in China, a market we know well and which we hope has good prospects.”

The deal will be closed after approval by the government of the Chinese province where the factory is located.