Chinanews, Shanghai, Dec. 28 – Through the purchase of its major shareholder1, Sinosteel has taken control of Zimasco Consolidated2 Enterprises Limited, the largest ferrochrome manufacturer in Zimbabwe and also the world's fifth largest ferrochrome producer, the Shanghai Securities Journal reported.
In September, Sinosteel signed the share acquisition agreement and the shareholder agreement in Beijing with ZCE, a company in Mauritius and also the major shareholder of Zimasco. With these two agreements, Sinosteel has purchased 92% of the shares of ZCE and become its largest shareholder. At present, ZCE has completed its re-registration process in Mauritius, a person in charge at Sinosteel told this reporter on Wednesday.
The share acquisition agreement allows Sinosteel to buy the rest of the 8% shares of ZCE at the agreement price any time within the next two and half years, so that Sinosteel will acquire the company's whole shares. The agreement also allows Sinosteel to take a full control of Zimasco, which owns 108 million tons of high-grade chrome resources in Zimbabwe.
The purchase will strengthen Sinosteel's strategic position in African mining industry and its decision power in world chrome manufacturing industry.
As the fifth largest ferrochrome producer in the world, Zimasco's total capitalization reaches several million US dollars. It owns the largest high-quality chrome ore resource in Zimbabwe. Every year, it produces 592,000 tons of fine chrome ore and 190,000 tons of high carbon ferrochrome.