Aluminium producer Vimetco on Friday announced it had acquired Global Aluminium Limited, including a subsidiary bauxite mine, from Titanium Resources Group for $40-million, which was seen as further progress in achieving full vertical integration.
A Global Aluminium subsidiary owned the bauxite mine under a mining lease with the government of Sierra Leone.
"While bauxite is abundantly available, opportunities to acquire such mineral assets are few and far between. The acquisition supports our growth strategy...," Vimetco CEO Christian Wüst, said in a media statement.
The group already owned an alumina refinery in Romania through its Alum subsidiary, where an extensive modernisation programme was proposed, and which supplied alumina to Vimetco's aluminium smelter at Alro in Slatina, in Romania.
"By bringing ore production in house, we are well positioned to take advantage of multiple opportunities for further resource and refinery development projects in the region, as well as being able to control commodity costs and supply, all of which will reinforce our position as a leading aluminium producer," he added.
The mine contained a resource base of about 31-million tons of bauxite and produced about 1,2-million tons a year for export. Further reserves have also been identified and exploration work was under way.
Contract mining company PW Mining International operated the mine, with bauxite being sold through off-take agreements, which would run until the third quarter of next year.
The $40-million included working capital of about $4,2-million and the assumption of a loan of about $10-million, and was subject to the adjustments for working capital and a contingency payment of $500 000.