Eramet to sell TiZir smelting plant in Norway to Tronox for $300m
Eramet, a French mining and metallurgy company, has agreed to sell its subsidiary TiZir Titanium and Iron (TTI), the owner of a titanium and iron ilmenite upgrading facility in Norway, to Tronox for about $300 million.
TiZir Titanium and Iron’s titanium smelting facility, which is located in Tyssedal, upgrades ilmenite to produce high-grade titanium slag and high-purity pig iron with an annual capacity of nearly 230,000 tons and 90,000 tons, respectively.
According to Eramet, the sale of TiZir Titanium and Iron to Tronox is a great opportunity for the sustainable development of the titanium smelting plant.
Based in the US, Tronox is an integrated producer of pigment and titanium dioxide.
Jeffry N. Quinn – chairman and CEO of Tronox said: “This highly strategic acquisition represents the next step in advancing our vertical integration strategy, providing Tronox with increased titanium feedstock capacity to better fulfill our internal requirements, and in turn, better serve our pigment customers with a low-cost, secure source of supply. The site is ideally situated to supply feedstock to our European pigment facilities.
“The technology and manufacturing capabilities acquired will lower our cost of obtaining the feedstocks we need to run our pigment plants, broaden the geographic diversity of our titanium feedstock operations, and improve the likelihood of a successful commissioning, ramp up, and eventual acquisition of the Jazan smelter. TTI is a great complement to Tronox because of a shared focus on operational excellence, safety and sustainability.”
Eramet to sell TiZir smelting plant in Norway to Tronox for $300m. Photo courtesy of Adeolu Eletu on Unsplash.
As part of the deal, Tronox will sign a supply agreement with Eramet’s Grande Cote Operations’ mineral sands mine in Senegal. Under the supply agreement, the mineral sands mine will continue to provide ilmenite to TTI for the production of titanium slag and pig iron.
Christel Bories – Chairman and CEO of Eramet said: “This transaction will allow us to fully value TiZir’s Norwegian plant, in the downstream mineral sands business. With our mine in Senegal, which offers a 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.”
Closing of the deal is subject to receipt of regulatory approvals and satisfaction of certain other conditions.