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Afrimat to buy AMSA’s interests in Northern Cape iron-ore projects

4th September 2020

By: Tasneem Bulbulia

Deputy Editor Online

     

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JSE-listed ArcelorMittal South Africa (AMSA) has reached an agreement to sell its 25% shareholding in Coza Mining, held through subsidiary Oakwood Trading, to Afrimat.

Coza’s principal activities are exploration and prospecting for iron-ore and manganese on three properties in the Northern Cape.

AMSA has on numerous occasions since 2018 indicated to shareholders that a foundational element of its turnaround strategy is to diversify the supply and cost structure of its strategic raw material supply.

This transaction is a contributor to that strategy.

To give effect to this, AMSA has also concluded a supply agreement with Afrimat Demaneng for the supply of direct shipping ore on favourable terms for each party.

Afrimat will also acquire the remaining 75% interest in Coza from other shareholders. It notes in a statement that the purchase consideration for Coza will be R300-million.

The payment to AMSA will total about R135.75-million.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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