Steel behemoth ArcelorMittal today said it has invested $432.5 million to buy a 50 per cent stake in South Africa-based Kalagadi Manganese to develop the deposits jointly with Kalahari Resources and Industrial Development Corporation Ltd.
"...The parties have today announced that all conditions precedent to the transaction have been satisfied and the transaction implemented. ArcelorMittal has effected payment of its subscription amount to subscribe for a 50 per cent interest in Kalagadi Manganese," ArcelorMittal said in a statement here today.
Kalagadi Manganese is engaged in exploration of manganese in the Kalahari Basin, in which until recently Kalahari Resources held 80 per cent stake and Industrial Development Corporation had a 20 per cent share holding.
As per the implementation of the transaction, Kalagadi Manganese would be 50 per cent owned by ArcelorMittal, 40 per cent by Kalahari Resources, while remaining 10 per cent would be with IDC, the South African state-owned financier, the statement said, adding an operating company would be formed to undertake the Kalagadi Manganese project.
The tripartite joint venture would undertake development of a manganese mine, beneficiation plant and sinter complex in the Northern Cape Province, and a smelter complex in Coega, Eastern Cape Province.
The project, which is due to come on-line in 2010, overlies the Kalagadi Manganese Basin, a world renowned source of manganese ore containing 80 per cent of the world's known manganese resources, it said.