EVRAZ confirmed that EVRAZ Highveld Steel and Vanadium (EVRAZ Highveld) — EVRAZ’s South African subsidiary — and Arkein International (Arkein) have signed an agreement to establish a joint venture, Nyanza Light Metals (Nyanza). The joint venture has been set up to perform feasibility studies around the possible extraction of titanium from the waste steel slag produced by EVRAZ Highveld and its beneficiation to produce the titanium dioxide pigment. EVRAZ Highveld will initially own a 20% share in the joint venture.
The project is currently at an early stage and does not require significant capital investment. EVRAZ Highveld’s future level of participation and actual share in the project will depend on the results of the feasibility studies and the decisions by EVRAZ Highveld’s future owner. No estimates regarding the potential size of capital expenditure has been given.
The entry into the joint venture project will not affect the on-going negotiations for the sale of EVRAZ Highveld, which is expected to be completed by the end of the third quarter of 2013.
