Arlington Heights, IL (USA) - Amcol International Corp. said Wednesday that it has agreed to pay the equivalentof $38 million to buy a controlling ownership stake in a South African chrome mine.
The Arlington Heights provider of specialty minerals noted that it is a leading U.S. marketer of the product known as chrome sand, which is used in the metalcasting industry. Chrome ore is a key ingredient in chrome sand.
Amcol said it will pay 41 million Australian dollars -- at current exchange rates valued at about U.S. $38 million -- to buy the 74 percent stake held by Australia-based Chrome Corp. Ltd.
The remaining 26 percent holding will remain in the hands of Aka Capital, a South African entity.
The buy-in "will allow Amcol to be the premier dedicated chrome sand supplier to foundries around the world," said President and Chief Executive Officer Larry Washow, "adding that the company considers the mine stake to be "an attractive investment opportunity in a key product line that offers significant growth potential."
The planned purchase is subject to a number of conditions, including approval from South African regulators as well as Amcol's bank lenders.