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South African diversified miner Exxaro Resources (EXX) on Monday announced that it planned to combine its mineral sands operations with the business of international pigment company Tronox Incorporated.
“Exxaro believes that its mineral sands business is best configured as an integrated mining-to-processing-to-pigment business and has been evaluating various opportunities over the past four years,” the company said.
The Exxaro mineral sands operations that will form the subject of the proposed transaction are 74% of the shares and intercompany debt in Exxaro's South African mineral sands operations, which comprise the Namakwa Sands and KZN Sands mines and smelters, and Exxaro's 50% interest in the Tiwest Joint Venture in Australia.
In terms of the agreement, the operations will be sold to a newly-formed Australian holding company in exchange for about 38.5% of the shares in the new company. - I-Net Bridge