LANXESS to sell its stake in chrome ore mine in South Africa
Specialty chemicals company LANXESS sells its 74 percent stake in its chrome ore mine in Rustenburg/South Africa to Clover Alloys (SA) Proprietary Limited, a South African supplier of chrome fine ores. On November 15, 2019 both companies signed a corresponding agreement. The parties have agreed to not disclose the purchase price. The transaction is subject to the approval of the relevant authorities. LANXESS expects the planned sale to be completed by the end of 2020. A 26 percent shareholding in the mine will remain with DIRLEM, the minority shareholder representing employees and some private investors. LANXESS had already announced the divestment of its chrome chemicals business to the Chinese company Brother Enterprises in August.
“We have clearly focused our portfolio on specialty chemicals in recent years and are systematically continuing along this path. Following the sale of our chrome chemicals business, it is therefore strategically logical to also divest our stake in the chrome ore mine as a key source of raw materials for this business,” said Rainier van Roessel, Member of the Board of Management at LANXESS.
The chrome ore from the mine is used as a raw material in the ferrochrome and chemical industry and in foundry applications. The mine employs some 500 staff and more than 1000 contractors.
Other news from the department business & finance
