(Alliance News) - Coal miner Merafe Resources Ltd on Friday said it has concluded a deal to pick up a stake in Unicorn Chrome Pty Ltd from Glencore PLC for ZAR32.2 million.
Merafe has picked up a 21% interest in Unicorn, and lauded the deal as "a valuable addition to its chrome interests".
"Unicorn has a shareholding in a UG2 chrome concentrate producer which extracts chrome concentrate from a tailings stream in the North West Province," Merafe said.
"Merafe considers this acquisition as a long-term strategic investment which will place the company in a better position and ahead of its peers from an operational perspective. Given the cyclical nature of the mining industry, prudent cash management is crucial, especially now during Covid-19 pandemic," the company said.
Shares in the company were 1.8% higher at ZAR0.56 each in Johannesburg on Friday morning. Glencore was down 2.6% at ZAR33.21. In London, Glencore was down 1.5% at 154.90 pence each in London.
By Eric Cunha; ericcunha@alliancenews.com
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Glencore (GLEN)