16 September 2009 20:04 [Source: ICIS news]
TORONTO (ICIS news)--Jinchuan Group, China's largest nickel and cobalt producer, is close to acquiring a 70% stake in a titanium dioxide (TiO2) feedstock project in Kenya, according to a regulatory filing on Wednesday.
The seller, Canada-based mining firm Tiomin Resources, said all that was needed to complete the deal was a “comfort letter” from the Kenyan government showing its support for the project.
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Tiomin and Jinchuan last month agreed to the deal under which Jinchuan would invest $25m (€17m) in Kwale at closing and would develop, finance and operate the project.
Tiomin, for its part, had raised more than $200m in debt and equity in 2006 to build Kwale, said Tiomin CEO Robert Jackson.
Jackson said that “failure [by the Kenyan government] to complete key actions according to schedule led to disastrous consequences” for Kwale, but did not disclose further details.
Tiomin has assessed Kwale’s production capacity at 330,000 tonnes/year of ilmenite, 75,000 tonnes/year of rutile and 40,000 tonnes/year of zircon.
($1 = €0.68)
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