TOKYO Japans largest ferroalloys producer, Nippon Denko Co. Ltd., has acquired a 12.25-percent stake in South Africas Kudumane manganese ore project from Asia Minerals Ltd. (AML).
The value of the deal was not disclosed.
AML has a 49-percent share in the mine, where production began this year. The 1.5-billion-rand ($150-million) project is expected to produce 1.5 million tonnes per year initially, eventually rising to 3 million tonnes per year in around seven years time. It has an estimated life-span of 30 years.
"The Kalahari area of South Africa contains 80 percent of the worlds manganese ore deposits. In order to secure sources of the raw material for our manganese ferroalloy operations and avoid market fluctuations, we need to invest in the area," Nippon Denko said.
A version of this article was first published by AMM sister publication Metal Bulletin.