ENRC acquires 12-per cent stake in Northam Platinum for $296 million

Kazakhstan's Eurasian Natural Resources Corporation Plc (ENRC), the world's largest ferrochrome producer agreed yesterday to acquire 12.2-per cent stake in South African platinum miner Northam Platinum (Northam) aiming to expand further its resource base in the African continent.

The stake will be acquired for cash from Mvelaphanda Resources Limited (Mvela Resources) who currently holds 63 per cent ownership in Northam, at a price of 50 South African rand ($6.82) a share for a total consideration of 2.2 billion rand (approximately $296 million), ENRC said in a press release.

ENRC, a large diversified natural resources group with its main production assets located in Kazakhstan has integrated mining, processing, energy and logistical operations. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index..  The company's divisions include ferroalloys, iron ore, alumina and aluminium, energy, logistics and other non-ferrous. ENRC controls sizeable proven reserves of minerals including chromium, manganese, iron ore, bauxite coal, copper and cobalt.

The government of Kazakhstan holds 11.65 per cent stake in the company as of March 2009.

The company reported revenue of $3.8 billion in 2009 and employs over 70,000 people.

ENRC chief executive officer Felix J Vulis said, ''The purchase of the interest in Northam is in line with our stated strategy of diversifying ENRC's commodity portfolio and its geographic exposure. The interest in Northam is a strategic opportunity to invest in one of the largest platinum group miners in the world at a time when platinum is expected to benefit from increased demand and to face supply constraints.''