PERTH (miningweekly.com) – ASX-listed Gulf Minerals has signed a memorandum of understanding (MoU) with Indian alloy group Ferro Alloys Corporation to conduct a due diligence and possibly establishing a joint fully integrated Indonesian manganese ore and alloy enterprise.
The MoU was conducted in two parts, the first of which covered the building and establishment of a smelter facility based in West Timor.
The second part of the MoU covered the development of manganese and coking coal mines in Indonesia, as well as other global locations.
Gulf Minerals chairperson Graham Anderson told shareholders on Tuesday that both companies had significant expertise in the ore and alloy business, and noted that joining ranks made sound commercial sense to build a world-class profitable manganese enterprise.
Gulf’s strategy was to develop a manganese group based on high-grade ores and premium alloy, and in the process list its subsidiary International Manganese Group on the Singapore Stock Exchange.
Ferro Alloys has expressed a possible interest in joining the initial public offering for International Manganese Group, and Anderson said that the MoU would include the right for the Indian firm to subscribe in equal portions to Gulf.