Jinchuan buys into Kenya project
Source: Xinhua |
September 3, 2009, Thursday
|
Print Edition
Print Edition
CHINESE mining firm Jinchuan has acquired a 70 percent stake in Tiomin Kenya Ltd in a bid to revive the titanium mining project located in Kenya's coastal region.
A statement from the Canadian-based mining firm, Tiomin, received yesterday, said Jinchuan acquired the controlling equity interest in Tiomin Kenya, a wholly owned subsidiary of Tiomin that owns 100 percent of the Kwale Mineral Sands Project in Kenya.
The investment deal which was signed on Monday offers Jinchuan a 70 percent stake in Tiomin Kenya Ltd, leaving the Canadian parent with 30 percent.
The statement said Jinchuan is expected to immediately invest US$25 million into the mining project to offer the financial muscle it needs to take off.
"Tiomin Resources is pleased to announce that it has taken a significant step forward and signed an investment agreement with Jinchuan Group Ltd, one of China's largest companies," the statement said.
The Canadian and Chinese firms hope to mine an average of 330,000 tonnes of titanium-bearing ilmenite, 77,000 tonnes of rutile and 37,000 tonnes of zircon a year from the Kwale Mineral Sands site.
The statement said all net cash flow generated by Kwale will be used initially to repay project debt and thereafter net free cash flow will be distributed pro-rata 70 percent to Jinchuan and 30 percent to Tiomin.
Jinchuan is China's biggest nickel producer and fourth-largest copper producer.
A statement from the Canadian-based mining firm, Tiomin, received yesterday, said Jinchuan acquired the controlling equity interest in Tiomin Kenya, a wholly owned subsidiary of Tiomin that owns 100 percent of the Kwale Mineral Sands Project in Kenya.
The investment deal which was signed on Monday offers Jinchuan a 70 percent stake in Tiomin Kenya Ltd, leaving the Canadian parent with 30 percent.
The statement said Jinchuan is expected to immediately invest US$25 million into the mining project to offer the financial muscle it needs to take off.
"Tiomin Resources is pleased to announce that it has taken a significant step forward and signed an investment agreement with Jinchuan Group Ltd, one of China's largest companies," the statement said.
The Canadian and Chinese firms hope to mine an average of 330,000 tonnes of titanium-bearing ilmenite, 77,000 tonnes of rutile and 37,000 tonnes of zircon a year from the Kwale Mineral Sands site.
The statement said all net cash flow generated by Kwale will be used initially to repay project debt and thereafter net free cash flow will be distributed pro-rata 70 percent to Jinchuan and 30 percent to Tiomin.
Jinchuan is China's biggest nickel producer and fourth-largest copper producer.
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