ArcelorMittal, the world's largest integrated metals and mining company, has announced its unconditional participation in Kalagadi Manganese joined venture, signed on November 20, 2007 with South Africa-based Kalagadi Manganese, for the development of Kalagadi's manganese resources. All the conditions precedent to the transaction have been satisfied and the transaction implemented.
According to the $432.5 million deal, ArcelorMittal will own a 50 percent stake in Kalagadi Manganese, while remaining 40 percent would be owned by Kalahari Resources and other 10 percent by Industrial Development Corporation Ltd.
The tripartite JV will result in the establishment of a manganese mine, a beneficiation plant and a sinter complex in Northern Cape Province in South Africa, which will ultimately produce 2.4 million mt of sinter per year, as well as a smelter complex in Coega, Eastern Cape Province. Drilling to date has confirmed the presence of a high grade manganese ore resource sufficient to support a life of mine for more than 20 years.
The project, which is due to come online in 2010, overlies the Kalagadi Manganese Basin, a world renowned source of manganese ore containing 80 percent of the world's known manganese resources.