ArcelorMittal to sell stake in South African miner Kalagadi Manganese for $438 mn

ArcelorMittal, the world's largest steelmaker, yesterday agreed to sell its 50 per cent stake in South African miner Kalagadi Manganese to the chairwoman of joint venture partner Kalahari Resources, for 3.9 billion rand ($438 million).

"A definitive agreement has been reached whereby Mashile-Nkosi, or her nominee will acquire ArcelorMittal's 50-per cent interest in Kalagadi Manganese," the Luxembourg-based steelmaker said in a statement.

Post-closing of the transaction Kalahari Resources will hold 40 per cent interest in Kalagadi Manganese, Mashile-Nkosi will hold 50 per cent, and the remaining 10 per cent by the Industrial Development Corporation of South Africa Ltd.

Kalagadi Manganese explores and produces manganese in the Kalahari Manganese basin, Northern Cape Province of South Africa.

The company holds new order mining rights, which are believed to hold around 960 million tons of manganese ore. In a recent exploration, the company has identified 102 million tons of mineral resources.

The sale comes when ArcelorMittal, run by London-based billionaire Laxmi Mittal, had in July it said that it would sell some non-core assets in order to reduce its huge debt of $22-billion.