ENRC makes first Chinese acquisition
Ferrochrome producer Eurasian Natural Resources Corporation was back on the acquisition trail Thursday, buying a 50% stake in a Chinese ferroalloys producer.
ENRC is paying RMB101.25m ($14.5m) in cash for a half-share in Xinjiang Tuoli Taihang Ferro-Alloy, which owns one of China’s largest ferrochrome plants with an annual capacity of 120,000 tonnes of high carbon ferrochrome.
ENRC currently supplies 70% of the plant’s chrome ore.
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“We are excited to have made our first acquisition in China, a market we know well, and one which we believe has excellent prospects,” said Dr. Johannes Sittard, chief executive officer of ENRC.
The acquisition follows the purchase earlier this month by ENRC of a 50% stake in Bahia Mineracao Limitada (BML) for $300m in cash. BML focuses on the development of an iron ore deposit in the Bahia State of Brazil.
