Withdrawal from Chrome Chemicals Lanxess Sells Shares in South African Chrome Ore Mine

Lanxess sells its 74 % stake in a chrome ore mine in Rustenburg, South Africa, to Clover Alloys, a South African supplier of chrome fine ores.

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Cologne/Germany; Rustenburg/South Africa — On November 15, 2019, Lanxess and Clover Alloys signed an agreement for the sale of a chrome ore mine in South Africa. The parties have agreed to not disclose the purchase price. The transaction is subject to the approval of the relevant authorities. The speciality chemicals company expects the planned sale to be completed by the end of 2020. A 26 % shareholding in the mine will remain with Dirlem, the minority shareholder representing employees and some private investors.

Lanxess had already announced the divestment of its chrome chemicals business to the Chinese company Brother Enterprises in August. After the sale of the chrome chemicals business, it was only logical to divest the chrome ore mine as an essential source of raw materials for this business, said board member Rainier van Roessel.

The chrome ore from the mine is used as a raw material in the ferrochrome and chemical industry and in foundry applications. The mine employs some 500 staff and more than 1000 contractors.

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