Eramet: Agreement signed with Tronox for the sale of TiZir’s ilmenite transformation plant in Norway
14 Mai 2020 - 08:30AM
Eramet: Agreement signed with Tronox for the sale of TiZir’s
ilmenite transformation plant in Norway
Paris, 14 May 2020, 8:30 am
PRESS RELEASE
Eramet: Agreement signed with Tronox for
the sale of TiZir’s ilmenite transformation plant in
Norway
- Sale of TiZir’s Norwegian plant for approximately USD300m,
corresponding to the full value of the asset
- Continued development of mining operations in Senegal by
Eramet, with a high value creation potential
- Strengthening Eramet's balance sheet with a significant debt
reduction
- Transaction submitted to the satisfaction of certain
conditions, including regulatory approvals
Eramet announces the signature of a binding
agreement for the sale of 100% of the shares of TTI (TiZir Titanium
& Iron AS, "TTI"), TiZir’s Norwegian plant, to the Tronox
Holdings plc (the "Transaction"). The sale to Tronox, a leading
vertically integrated producer of pigment and titanium dioxide, is
a great opportunity for the sustainable development of the plant.
TTI’s sales reached €154 million and EBITDA amounted to €38 million
in 2019.
Mineral sands mining operations in Senegal
(Grande Cote Operations, "GCO") will remain controlled1 by the
Group and will continue to supply ilmenite to TTI for the
production of titanium slag and pig iron. Moreover, the agreement
with Tronox includes a supply contract of ilmenite for TTI.
The consideration for the Transaction, payable
on its completion, is approximately USD300m, representing a
multiple of c.8x EBITDA2 based on the enterprise value. The
transaction is subject to the satisfaction of certain conditions
including regulatory approvals, and Eramet will keep the market
informed of its progress.
In Senegal, with 735 kt of heavy mineral
concentrates produced in 2019, GCO’s site delivers excellent
operational performances. The deposit and its processing and
logistic facilities offer growth opportunities in the promising
mineral sands sector.
Christel Bories, Chairman and
Chief Executive Officer of Eramet, commented:
“This transaction will allow us to fully value
TiZir’s Norwegian plant, in the downstream mineral sands business.
With our mine in Senegal, which offers a high value creation
potential, we will continue developing in the upstream business.
This is fully in line with our strategy of increasing our
leadership positions in growing businesses. We have also initiated
new mining exploration activities in other geographies for minerals
sands. Once completed, this transaction will contribute to
strengthen Eramet’s balance sheet.”
Calendar
26/05/2020: Shareholders’ general meeting
29/07/2020: Publication of Group 2020 half-year
results
28/10/2020: Publication of Group 2020
third-quarter sales
ABOUT ERAMET
Eramet, a global mining and metallurgical group,
is a key player in the extraction and valorisation of metals
(manganese, nickel, mineral sands) and the elaboration and
processing of alloys with a high added value (high-speed steels,
high-performance steels, superalloys, aluminium and titanium
alloys).
The Group supports the energy transition by
developing activities with high growth potential, including
recycling and the extraction and refining of lithium.
Eramet positions itself as the privileged
partner of its customers in sectors that include carbon and
stainless steel, aerospace, pigments, energy, and new battery
generations.
Building on its operating excellence, the
quality of its investments and the expertise of its employees, the
Group leverages an industrial, managerial and societal model that
is virtuous and value-accretive. As a contributive corporate
citizen, Eramet strives for a sustainable and responsible
industry.
Eramet employs around 13,000 people in more than
20 countries with sales of c.€4 billion in 2019. For further
information, go to www.eramet.com
ABOUT TRONOX
Tronox Holdings plc is one of the world's
leading producers of high-quality titanium products, including
titanium dioxide pigment, specialty-grade titanium dioxide products
and high-purity titanium chemicals; and zircon. We mine
titanium-bearing mineral sands and operate upgrading facilities
that produce high-grade titanium feedstock materials, pig iron and
other minerals. With nearly 7,000 employees across six continents,
our rich diversity, unmatched vertical integration model, and
unparalleled operational and technical expertise across the value
chain, position Tronox as the preeminent titanium dioxide
producer in the world. For more information about how our products
add brightness and durability to paints, plastics, paper and other
everyday products, visit Tronox.com.
CONTACT -
INVESTORSExecutive VP Strategy and Innovation -
Investor RelationsPhilippe GundermannTel
: +33 1 45 38 42 78 Investor Relations manager
Sandrine Nourry-DabiTel : +33 1 45 38 37
02 |
CONTACT -
PRESSVP CommunicationPauline
BriandTel : +33 1 45 38 31
76Pauline.briand@eramet.com Image
7Marie ArtznerTel : +33 1 53 70 74 31 |
M. +33 6 75 74 31 73martzner@image7.fr |
1 At 90%
2 TTI’s EBITDA calculated based on exchange
rates on 12 May 2020