JOHANNESBURG (miningweekly.com) – London-listed International Ferro Metals (IFM), in conjunction with mining and commodities trading company Portnex International, has made an offer to acquire the assets owned by Australia-based Pacific Carbon and Modderriver Minerals on Kooragang Island, in Newcastle, Australia.
IFM and Portnex intended to acquire the assets, comprising six retorts used to produce intermediate or retort coke, through a newly incorporated company in which IFM would hold two-thirds and Portnex the balance.
These retorts had the capacity to produce 100 000 t/y of retort coke to serve an existing customer base in Australia, New Zealand and Asia.
The coking plants used bituminous coal, historically sourced from the western coalfields in New South Wales, and produced a high-quality retort coke, along with a small quantity of bituminous tar. The retort process strengthened the coal and removed a substantial amount of the volatile matter, resulting in an industrial-quality carbon, which was used in the ferroalloy and steel industries.
“This potential acquisition is an important step in executing our strategy of diversifying our product and customer base. The coke can be sold to a distinct customer base, which demands high quality and security of supply. We have a long relationship with Portnex working with them on our alternative reductant initiative and, together, we have confidence we can return the Pacific Carbon assets to profit,” IFM CEO Chris Jordaan said in a statement.
IFM noted that the receivers and managers of Pacific Carbon and Modderriver Minerals had accepted the offer; however, the deal remained subject to a number of conditions including due diligence, the parties entering into definitive transaction documents and IFM obtaining Australian foreign investment approval.
IFM and Portnex had been granted exclusivity for 30 days to allow them to finalise the due diligence and negotiate agreed transaction documents.
Should the transaction proceed, it would be funded through internally generated cash resources, IFM said.