Ruukki Group of Finland announced on the 5th of June that the Group has entered into a preliminary agreement with Kermas Limited ( Samancor Chrome ), which has been operating chrome production in South Africa, to launch chrome business and will invest Euro 200 million ( US$309 million ) in this project. This agreement is subject to an approval from the governments concerned and completion of due-diligence. |
By this chrome project, Ruukki Group has aimed to acquire chrome ore operations, being proceeded by Kermas in Turkey, and related sales operations of ferro-chrome in Malta. The chrome mine in Turkey has been owned by Elektrowerk Weisweiler GmbH of Germany and produced 50,000 tons per annum of chrome ore. This Turkish mine has approximately 4 million metric tons of economically mineable probable chrome ore reserves. Ruukki Group has been based on Epoo area of Finland and has been operating timber and furniture businesses. It was known on the 22nd May of this year that RCS Trading, which is a subsidiary of the Kermas Group headed by Dr. Danko Konchar, has acquired 26% of the shares of Ruukki, and Ruukki Group has entered into the joint venture with Kermas to develop chrome operations in Turkey.