The Russian steel producer Evraz Group has announced that its South Africa-based subsidiary Highveld Steel and Vanadium Corporation has entered into a definitive agreement with Vanchem Vanadium Products Limited (VVP), a company controlled by Swiss-based Duferco Investment Partners, regarding the disposal of three of its vanadium assets. The assets in question, which include class A shares in Mapochs Mine, Vanchem and also a 50 percent stake in South Africa Japan Vanadium, are to be sold for a consideration of $160 million with $100 million in cash discharged by immediate payment.
Evraz had made a commitment to dispose of certain of Highveld's assets as a condition for approval by the EU and South African competition authorities of its acquisition of a majority stake in Highveld.
In addition, Highveld has concluded an agreement with VVP for the supply of a certain volume of fines ore from Mapochs Mine, which cannot be used by Highveld in steelmaking, and also for the supply of a certain volume of vanadium-bearing slag, both at market-related prices.