CHINESE FIRM INCREASE THEIR STAKE IN TIOMIN MINE
CHINA'S JINCHUAN GROUP, has increased its shareholding in Tiomin Resources Incorporated's Kwale titanium mining to 20%, the Canadian firm has said. In a recent statement, Tiomin said that the $9.5 million (Sh665 million) agreement would finance and expedite the development of the mining project.
The firm also said it had offered Jinchuan 18 months to increase its interest in the mine to 30% by paying Sh1.02 billion. Jinchuan initially got a 9.9% stake in April last year for $6.5 million and a $35 million subordinated debt facility.
Tiomin Chairman and Chief Executive Officer, Jean-Charles Potvin, said that this financing begins what he hopes will be an accelerated development programme with potential cost savings by maximising Chinese content. Tiomin expects to mine an annual average of 330,000 tonnes of titanium-bearing ilmenite, 77,000 tonnes of rutile and 37,000 tonnes of zircon.
Jinchuan is the largest producer of nickel, cobalt and platinum group metals in China.