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Ironveld to acquire smelting business

By BFN News | 07:54 AM | Tuesday 11 April, 2017


Ironveld has signed two non-binding memoranda of understanding with Siyanda Inkwali Smelting Services (Pty) Ltd to subscribe for shares to acquire a 100% interest in Siyanda Smelting and Refining (Pty) Ltd and a purchase agreement to acquire 70% of Power Alt (Pty) Ltd. Siyanda Smelting currently owns a smelting plant comprising three arc furnaces and two induction furnaces, a convertor and associated equipment with a smelting capacity of 7.5 MW. Power Alt is the direct owner of an Independent Power Producing Plant that generates 10.6 MW of electricity through 4 natural gas powered turbines. Ironveld said the transactions would enable early production of HPI, vanadium and titanium from the project and would facilitate supply into the company's offtake agreements. It said the transactions would provide the company with a readymade smelter that was expected to deliver highly attractive economic returns and early free cash flow whilst providing the platform for organic growth. Story provided by StockMarketWire.com

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