December 02, 2008

Minmetals unit buys rights to SA chrome mine

Reuter reported that a unit of Chinese state owned trading firm Minmetals Group had won approval to buy exploration rights to a South African ferrochrome deposit for USD 6.5 million(ZAR 5.7 million).

Minmetals in a statement to the Shanghai stock exchange said that it would buy the rights deposit from Mission Point and Versatex.

Minmetals is gradually assuming the steel related assets of its parent, as part of a larger restructuring of the mining and metals trading firm. It earlier also bought its parent's stake in a medium steel plate maker in the northeast city of Yingkou in Liaoning Province.

Chinese firms are investing world wide to secure raw materials to feed an economy that has grown by over 10% in 2006. China imports over 90% of the ferro chrome consumed by its booming stainless steel industry.