Metmar to benefit from manganese investments

Tag : manganese
Metmar to benefit from manganese investments Monday , 08 Sep 2008

JSE-listed commodities trading company, Metmar Limited is derivingsubstantial benefits from its investment in Kalahari Resources(Proprietary) Limited ("Kalahari") which has a shareholding inKalagadi Manganese (Proprietary) Limited ("Kalagadi"). Kalagadi isdeveloping the Kalagadi Manganese Project ("the project") locatednear Kuruman, Northern Cape as well as a smelter complex in Coega.
The project's prospects were confirmed in November 2007, whenArcelorMittal acquired a 50% stake in Kalagadi in a deal valuingtheir share of the project at R2,3 billion. The IndustrialDevelopment Corporation has a 10% stake in the project withKalahari owning the remaining 40%. Metmar Limited owns 11.66% ofKalahari.
Kalahari has announced its intention to make a cash distribution ofR223 million, enabling its shareholders, which include a broadbased women-led BEE consortium, to derive value from theirinvestment in the project.
"We are delighted that our long term strategy of taking minorityequity stakes in mineral production projects is paying off," saidDavid Ellwood, Chief Executive Officer, Metmar Limited. "Weinvested at the outset of this project, and are now reaping therewards with a cash payout of R26 million."
In addition, ArcelorMittal last week announced its commitment ofUS$432,5 million to develop a 3 million ton per annum manganesemine, a planned 2,4 million ton per annum sinter plant near Kurumanand a 320 000 metric ton per annum manganese alloy plant at Coega.The pre-feasibility study completed in 2007 confirmed a totalinferred mineral resource of 39 million tons of manganese ore at agrade of 38.9%, which will support the project for at least 20years.