Reuters reported that Japanese trading firm Itochu Corporation agreed to acquire an 8% stake in Beales Limited which controls the Platreef platinum and nickel project in South Africa for about USD 280 million.

Ivanhoe Nickel & Platinum is also partly owned by Ivanhoe Mines which is developing the massive Oyu Tolgoi copper and gold project in Mongolia. Last year, Itochu had already acquired 2% stake in Beales for about USD 10 million. The latest investment will take Itochu's stake in Beales up to 10%.

Itochu said it believes the project can be developed into a major underground mine that will produce platinum group metals that are widely used as catalysts to clean exhaust gas from cars.

The company said that the deal gives Itochu the right to acquire 10% of the project's output, once it goes into production. By participation in this project, Itochu has acquired production off take rights, proportional to its participation thereby helping to secure PGM resources for Japan and increasing its interests in the resources sector.

(Sourced from Reuters)