Iscor - Huge Foreign Direct Investment In Sa Annou
Iscor Limited
Huge Foreign Direct Investment in SA Announced
Iscor Limited, today announced an R820 million foreign direct investment in
South Africa by Australian-based Ticor Limited - to be realized over the next
two years - as a result of Ticor acquiring 40% of Iscor's heavy minerals
operation.
The country is expected to realise foreign exchange earnings estimated to be
R1,8 billion per annum during full production.
The Iscor heavy minerals project, centred in Kwazulu-Natal, has already
generated 2 500 jobs during the construction phase of the mine and mineral
separation plant, while 680 permanent jobs will be created, growing to 900 in
the longer term. Significantly more indirect permanent jobs will be created as
a result.
An overwhelming majority of Ticor shareholders (95%) this week voted to invest
in South Africa. Iscor owns 41% of the Melbourne-based Ticor Limited. As a
related party, the company recused itself from voting on the Ticor shareholder
resolution.
The announcement of the investment comes soon after remarks by President Thabo
Mbeki at the opening of parliament that the government plans to improve
conditions in order to encourage foreign investment in South Africa.
Iscor chairman, Hans Smith, said that the transaction was a major development
in Iscor's unfolding strategy to create a heavy minerals company that is likely
to become the third largest feedstock producer in the world.
In terms of the transaction, which is subject to regulatory approvals, Ticor
gains management rights and the additional mineral sands resources owned by
Iscor in the Eastern Cape and Northern Provinces, significantly enhancing
Ticor's growth prospects in South Africa in the long-term.
Following the successful commissioning of the mine and smelter, Ticor will also
be entitled to purchase Iscor's remaining shareholding in the project at market
value.
Con Fauconnier, Iscor's director for mining operations said that Ticor was
initially identified by Iscor as its preferred partner because of its extensive
experience in the titanium industry and the expectation that it can facilitate
technology transfers to South Africa.
"We are delighted with Ticor's investment and its future operational
involvement. Ticor will also obtain rights to Iscor's smelting and slimes
handling technology as well as business development in the titanium feedstock
industry".
Matie von Wielligh, Iscor's general manager for heavy minerals said that
Ticor's announcement signals the start of a new global era for both Ticor and
Iscor. "The consolidation of our interests will sharpen our focus and
competitive position".
ends
Contact: MP Kalam
Group Executive, Corporate Affairs
Tel.: 012 307 4042 / Fax.: 012 307 3149
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