FMC Sells Sodium Cyanide Business
Philadelphia, March 14, 2002 -- FMC Corporation today announced that Cyanco Company, the 50/50 joint venture between Degussa Corporation and Winnemucca Chemicals, a wholly owned subsidiary of Nevada Chemicals, Inc., has purchased the commercial and certain distribution assets related to the company’s sodium cyanide business. Terms of the transaction were not disclosed. As a result of this transaction, FMC will exit the business, ending its 12-year role as a supplier of sodium cyanide to the Nevada gold mining industry. Cyanco will assume FMC’s on-going contractual obligations under its existing sodium cyanide contracts and is expected to begin supplying these customers on April 1, 2002. The changeover is intended by both companies to be a seamless transition with no loss of service or dislocations to the customer base.
FMC will close its sodium cyanide manufacturing plant located near Green River, Wyoming, and will also cease sodium cyanide distribution from its Battle Mountain, Nevada, distribution terminal.
The FMC supply contracts acquired by Cyanco are with several key Nevada gold mining operations. According to Cyanco estimates, the business purchased represents approximately 25,000 tons of additional sodium cyanide business for Cyanco during the lifetime of the contracts. In addition to the transferred contracts Cyanco purchased several key pieces of equipment including distribution vehicles and storage tanks.
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