Global miner Eramet has signed a binding agreement with Tronox Holdings to sell the company’s stake in TiZir Titanium & Iron (TTI).
The transaction will transfer control to Tronox of TTI’s Norwegian ilmenite transformation plant, for a consideration of $300-million.
Tronox is a leading vertically integrated producer of pigment and titanium dioxide, which can help to sustainably develop the Norwegian plant.
Eramet continues with its mineral sand mining operations in Senegal, and will continue to supply ilmenite to TTI for the production of titanium slag and pig iron.
The agreement that Eramet has with Tronox includes a supply contract of ilmenite for TTI.
Eramet CEO and chairperson Christel Bories says the transaction allows Eramet to fully value TTI’s Norwegian plant, in the downstream mineral sands business.
“With our mine in Senegal, which offers high value creation potential, we will continue developing in the upstream business.
“This is fully in line with our strategy of increasing our leadership positions in growing businesses. We have also initiated new mining exploration activities in other geographies for minerals sands. Once completed, this transaction will contribute to strengthen Eramet’s balance sheet.”