Illinois, US-based specialty mineral producer AMCOL International Corporation has announced that it has exercised its option to purchase the remaining 47 percent interest in a holding company that owns a chromite mine in South Africa from Chrome Corporation for US$12.4 million.
According to a company statement, AMCOL is required to transfer a 26 percent interest in the mine to a South African Black Economic Empowerment Enterprise, after which AMCOL will hold a 74 percent interest in the mine.
Chromite ore is a feedstock used to produce chrome sand needed by steel foundries.
Gary Castagna, president of Global Minerals & Materials, commented, "This investment solidifies AMCOL's position as an integrated supplier of chrome sand to steel foundries. We began commissioning a world class-plant with enhanced processing technology in July and can continue developing chrome sand sales in Asia, Europe and South America."