China's Henan Province-based China Special Steel Holdings Company Limited has announced that its shareholders agreed at the company's extraordinary general meeting held yesterday in favor of the takeover of Indonesia-based mining company S.E.A. Mineral Limited for a price tag of 2.73 billion Hong Kong Dollars ($349.27 million).
The takeover of the Indonesian company will secure mining rights for the next 14 years for China Special Steel at the iron ore and nickel mine of Yiwan Mining Ltd, which is located in Indonesia's Southern Kalimantan province.
China Special Steel is a bearing and spring steel manufacturer for the automobile industry. It is planning to increase its capacity by 500,000 mt. The new mine will provide the required raw material for this capacity increase.