BHP Billiton and Anglo American plc (“Anglo American”) announced today that they have reached agreement for the sale of Samancor Chrome to the Kermas Group for an enterprise value of US$469 million. The sale will be effective 1 April 2005, subject to obtaining regulatory approvals.
The Kermas Group is a producer of and trader in ferrochrome and chrome chemicals, with activities in Russia, Germany and Turkey.
The Wonderkop joint venture and Palmiet Ferrochrome plant are excluded from this transaction. Samancor Chrome operates entirely in South Africa, and includes Eastern Chrome Mines in Mpumalanga and Western Chrome Mines in Northwest Provinces. It also has alloy plants in Gauteng and Mpumalanga Provinces. It markets product across the globe and in total employs some 5 500 people.
Samancor Chrome is a wholly owned subsidiary of Samancor, owned 60% by BHP Billiton, also the operator and 40% by Anglo American.
For more information on ferrochrome, click here.