Amcol Acquires Chrome Mine Posted on: Sunday, 4 May 2008, 03:00 CDT
Amcol International, the parent of American Colloid Co., has agreed to take a 74-percent interest in a chrome mine in South Africa owned by Chrome Corp. The investment is valued at approximately $38.3 million. Chrome ore is used to produce chrome sand, which Amcol markets to the U.S. metalcasting industry.
The remaining 26 percent of the mine is owned by Aka Capital. Amcol, an Australian-based company, will retain control of the business and said it is discussing a co-investment by another, unnamed South African company, in the mine, the processing operations and downstream marketing of the mine products.
Amcol president and chief executive officer Larry Washow said, "This investment will allow Amcol to be the premier dedicated chrome sand supplier to foundries around the world."
Amcol said that approximately 90 percent of the 18 Mt (20 million st) of chrome ore mined annually is used to produce ferrochrome, according to industry estimates. Rising global demand for stainless steel has tightened ferrochrome supplies, impacting supplies of foundry chrome.
Copyright Society for Mining, Metallurgy, and Exploration, Inc. Apr 2008
(c) 2008 Mining Engineering. Provided by ProQuest Information and Learning. All rights Reserved.