ERAMET and Mineral Deposits have Signed Definitive Agreements for the Creation of a Joint-Venture in the Mineral Sands Sector
Published : July 28, 2011
( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment
Keywords :   Debt | Europe | Gold | Growth | Ilmenite |

MELBOURNE, AUSTRALIA--(Marketwire - July 27, 2011) - ERAMET and Mineral Deposits Limited (TSX:MDM)(News - Market indicators) ("MDL") announced today that they have signed the definitive agreements for the creation of a joint venture to combine ERAMET Titanium & Iron ("ETI") and MDL's Grande Côte Mineral Sands Project ("Grande Côte").

As proposed in the terms of the Memorandum of Understanding announced on 20 June 2011, ERAMET and MDL will both hold 50% of the shares of the newly created entity. ERAMET will contribute to the joint venture its 100% shareholding in ETI and cash of US$30m, and MDL will contribute its 90% participation in the Grande Côte Mineral Sands project, the other 10% of the project being held by the Republic of Senegal.

The transaction creates a new major player in the mineral sands industry which presents attractive growth prospects given the supply deficits forecast in the titanium dioxide and zircon markets in the short and medium term, and the low substitution risk of these two products. Titanium dioxide is mainly used for the production of pigments (91% of consumption) and of titanium metal – notably for the aeronautics industry – (5%). Zircon is used in the production of ceramics (55% of consumption), zirconia and chemicals (18%), refractory materials (11%) and foundry parts (11%).

ETI owns the Tyssedal plant in Norway, which is the only facility in Europe producing titanium dioxide (TiO2) slag for use in the pigment sector. Current capacity is approximately 210 ktpa of TiO2 slag, and approximately 115 ktpa of high-purity pig iron as a very important co-product, which is sold to ductile iron foundries, notably for the production of parts for wind turbines. Ilmenite is the major feedstock of the plant.

Located on the coast of Senegal in West Africa, the Grande Côte Mineral Sands Project, with an expected mine life of at least 20 years (based on identified reserves and resources), is anticipated to produce approximately 85 ktpa of zircon and 575 ktpa of ilmenite (and small amounts of rutile and leucoxene) when in full production. Construction of the Project will commence during the current quarter, and after a two year build, production is expected to commence late in 2013. The capital cost of the Project, estimated at US$516 million, will be financed using ERAMET's cash contribution of US$30 million to the joint venture, a US$45 million shareholder loan provided by ERAMET to the joint venture, third party debt financing and equity contributions or shareholders loans set up at parity between the joint venture and the two parties. Grande Côte is one of only a few major new projects globally that is expected to be developed in the medium term.

The combination of ETI and Grande Côte will provide ETI with the opportunity to benefit from a new source of high quality ilmenite, which provides for expansion and product diversification opportunities, while Grande Côte will be able to secure off-take for the majority of its ilmenite production. Grande Côte's zircon production will allow the jointventure to have a strong position in another attractive market. Finally, the joint venture will benefit from ERAMET's broad expertise in mining, metallurgy, logistics, R&D and marketing, and from MDL's development expertise (having successfully commissioned the Sabodala gold project in Senegal in 2009) and mineral sands mining experience.

The closing of the transaction is subject to certain conditions precedents and is expected to take place by the end of September 2011.

Patrick BUFFET, Chairman and CEO of ERAMET, stated that "This partnership with Mineral Deposits Limited will allow ERAMET to leverage on ERAMET Titanium & Iron's strengths and create a significant vertically integrated titanium feedstock producer, which will expand and diversify the group's product range with the production of zircon, two very attractive markets with a supply deficit expected in the coming years."

Nic LIMB, Executive Chairman of MDL, stated: "We are delighted to have formed this partnership with ERAMET. The combination of a word class mineral sands ore body and a Tier-1 production facility is compelling industrial rationale, and positions the joint venture exceptionally strongly in a growth sector."

ERAMET is a leading global producer of:

  • alloying metals, particularly manganese and nickel, used to improve the properties of steel,
  • high-performance special steels and alloys used in industries such as aerospace, power generation and tooling.

ERAMET is also studying or developing major projects in new metals with high growth potential such as lithium, niobium and rare earths, as well as in recycling.

The Group employs approximately 14,000 people in 20 countries. ERAMET is part of Euronext Paris Compartment A and is listed on the MSCI index.

Mineral Deposits Limited is an Australian-based, ASX and TSX listed mining company developing the world class Grande Côte Mineral Sands Project in Senegal, West Africa. Grande Côte, which is expected to commence production late in 2013, is one of only a few major new projects globally that can take advantage of the supply-constrained mineral sands sector.



ERAMET
Mr. Philippe Joly
Vice-President Strategy and Investor Relations (Paris)
+33 (0)1.45.38.42.02
Shareholder information:
www.eramet.com
or
Mineral Deposits Limited
Mr. Nic Limb
Executive Chairman
+61 (0)3.9909.7633
or
Mineral Deposits Limited
Mr. Rick Sharp
Managing Director and Chief Executive Officer
+61 (0)3.9909.7633
Shareholder information:
www.mineraldeposits.com.au
Data and Statistics for these countries : Norway | Senegal | All
Gold and Silver Prices for these countries : Norway | Senegal | All

Mineral Deposits limited

PRODUCER
CODE : MDL.AX
ISIN : AU000000MDL9
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy

Mineral Deposits is a gold producing company based in Australia.

Mineral Deposits develops gold, ilmenite and zircon in Senegal.

Its main asset in production is SABODALA in Senegal and its main asset in development is GRANDE COTE in Senegal.

Mineral Deposits is listed in Australia and in Germany. Its market capitalisation is AU$ 343.7 millions as of today (US$ 252.1 millions, € 215.7 millions).

Its stock quote reached its highest recent level on April 01, 2011 at AU$ 7.46, and its lowest recent point on January 22, 2016 at AU$ 0.18.

Mineral Deposits has 196 990 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
Corporate Presentations of Mineral Deposits limited
7/31/2007Quarterly Report June 2007
In the News and Medias of Mineral Deposits limited
11/4/2018How to find mineral deposits at the edges of ancient contine...
8/3/2018How big data can help find new mineral deposits
Annual reports of Mineral Deposits limited
2009 Annual report
QUARTERLY REPORT FOR THE PERIOD ENDED 30 JUNE 2008
Nominations of Mineral Deposits limited
6/7/2013MDL Nomination of Directors to the Board of Teranga Gold Cor...
1/19/2012Appointment of Non-Executive Director-Tom Whiting
4/2/2008Board Appointment - Executive Director
11/1/2007SENIOR EXECUTIVE APPOINTMENT – MINERAL SANDS DIVISION
Financials of Mineral Deposits limited
2/18/2016Financial Results for 2015 - Mineral Deposits
2/26/2014Financial Results for 2013 Year
1/23/2014Fourth Quarter 2013 Operations Review
10/21/2013Third Quarter 2013 Operations Review
7/26/2013Second Quarter 2013 Operations Review
Project news of Mineral Deposits limited
6/17/2010Grande C=F4te Definitive Feasibility Study Results
8/26/2009(Sabodala)Three Tonnes of Gold Produced at Sabodala
11/18/2008(Sabodala)SABODALA GOLD PROJECT – NEW RESERVE ESTIMATE
5/27/2008(Sabodala)SABODALA GOLD PROJECT – MINING FLEET ARRIVES
5/20/2008(Sabodala)2008 Technical report
4/18/2008(Sabodala)Sabodala Gold Project Update
2/7/2008(Sabodala) agrees US$130M bank debt package for construction and devel...
1/21/2008(Sabodala) Sabodala Gold Project - Underground Reserves Potential
10/24/2007(Sabodala)Sabodala and Niakafiri Resources and Reserves
9/25/2007(Grande Cote)Grande Côte Zircon Project
9/19/2007(Sabodala)SABODALA GOLD PROJECT : Mineralised Zone Extending North
8/16/2007(Sabodala)Sabodala Gold project - Formal Contract Signed with Ausenco
7/13/2007(Sabodala) High Grade Wide Ore Zone Depth Extensions at Sabodala
5/30/2007High Grade Hits at Sabodala
5/22/2007(Sabodala)Sabodala East Flat Zone Extends 210 metres
Corporate news of Mineral Deposits limited
7/28/20162Q 2016 Operations Review
5/20/2016Results of Annual General Meeting 2016
4/8/2016Board Succession & Appointment of Managing Director
1/15/2014Disposal of Teranga Shareholding
12/13/2013A$40 million Equity Placement
11/1/2013Increased interest in World Titanium Resources
8/15/2013First Half 2013 Results
7/4/2013Withdrawal of Director Nominations to the Board of Teranga G...
6/13/2012: Voluntary Delisting From Toronto Stock Exchange
1/3/2012Equity Position in World Titanium Resources
10/25/2011ERAMET and Mineral Deposits Limited Announce the Closing of ...
9/26/2011(Grande Cote)Grande Cote Continued Ramp-Up
7/28/2011ERAMET and Mineral Deposits have Signed Definitive Agreement...
7/18/2011Completes Retail Entitlement Offer
6/20/2011Joint Venture with Eramet and Equity Raising
7/31/2008Quarterly Report for the period ended 30 June 2008
4/30/2008Quarterly Activities Report for p/e 31 March 2008
4/14/2008 signs US$35 million bank debt facility
1/8/2008Quarterly Report for the period ended 31 December 2007
12/14/2007PROSPECTUS – TSX LISTINGd
12/13/2007PRICING OF OFFERING
11/28/2007GRANDE COTE PRESIDENTIAL DECREE SIGNED
11/12/2007REGIONAL GOLD DRILLING PROGRAMME UNDERWAY AT BRANSAN, SENEGA...
10/31/2007QUARTERLY REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2007
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
AUSTRALIA (MDL.AX)FRANKFURT (MDI.F)
1.75+0.00%1.08-0.92%
AUSTRALIA
AU$ 1.75
08/28 11:00 -
0%
Prev close Open
1.75 1.75
Low High
1.75 1.75
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  1.75 0.287%
Volume 1 month var.
0 0.287%
24hGold TrendPower© : 44
Produces Gold
Develops Ilmenite - Zircon
Explores for
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
Last updated on : 6/9/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
MOST READ
Annual variation
DateVariationHighLow
201867.79%1.840.99
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
AU$ 7.04-0.14%Trend Power :
Oceana Gold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
AU$ 2.59-2.26%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 3.62+3.75%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.57-1.88%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.02-25.00%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 2.91+4.30%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 6.93+1.17%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.28-3.39%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.28-1.79%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.09-0.95%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 57.78+1.99%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.03+0.00%Trend Power :