ERAMET and Mineral Deposits Limited announced that they have signed a MoU for the creation of JV to combine ERAMET Titanium & Iron which operates the Tyssedal titanium slag and high purity pig iron plant in Norway, and Grande Côte Mineral Sands project located in Senegal for which construction will commence in the next quarter.
The combination of ETI with Grande Côte would create a new major player in the mineral sands industry and would give the new entity the option to become a vertically integrated titanium feedstock producer with the Tyssedal plant benefiting from a new source of high quality ilmenite supply while Grande Côte would be able to secure the sale of most of its ilmenite production.
Under the terms of the Memorandum of Understanding, ERAMET and MDL have entered into exclusivity arrangements to finalize formal documentation under which ERAMET and MDL would both hold 50% of the shares of the newly created entity. ERAMET would contribute to the joint venture 100% of its shares in ETI and cash of US$30m, and MDL would contribute its 90% participation in the Grande Côte Mineral Sands project, the other 10% of the project being held by the Republic of Senegal.
The parties intend to finalize the formal documentation by the end of July 2011 and complete the formation of the joint venture by the end of September 2011.
ERAMET is a leading global producer of:
1. Alloying metals, particularly manganese and nickel, used to improve the properties of steel,
2. High performance special steels and alloys used in industries such as aerospace, power generation and tooling.
ERAMET is also studying or developing major projects in new metals with high growth potential such as lithium, niobium and rare earths, as well as in recycling. The Group employs approximately 14,000 people in 20 countries. ERAMET is part of Euronext Paris Compartment A and is listed on the MSCI index.
ERAMET Titanium & Iron, formerly Tinfos Titan and Iron is a 100% subsidiary of ERAMET. The Tyssedal plant in Norway has an annual capacity of 210 000 tonnes of titanium dioxide slag for use in the white titanium pigments industry. ETI is the only European producer of slag, and a major consumer of ilmenite. A very important co-product of this activity is high-purity pig iron sold to ductile iron foundries, notably for the production of wind mills parts.
Mineral Deposits Limited is an Australian based, ASX and TSX listed mining company developing the world class Grande Côte Mineral Sands Project in Senegal, West Africa. Grande Côte, located on the coast of Senegal is expected to have a mine life of at least 20 years and is anticipated to produce on average approximately 85 kilo tonne per annum of zircon and 575 kilo tonne per annum of ilmenite, making it one of only a few major new projects globally that can take advantage of the significant supply deficit emerging in the mineral sands sector. On site construction of the Project is expected to commence in the third quarter of 2011 and after a two year build, production is expected to commence late in 2013. The company also owns a minority interest in Teranga Gold Corporation, a Toronto based gold company.
