The board of Taiwan's China Steel Corp (CSC) has approved a $62.46 million investment for a 19% stake in Sakura Ferroalloys Sdn Bhd, a joint venture producing ferromanganese in Sarawak, Malaysia, CSC said Wednesday.
The project, scheduled to be commissioned in 2016, has 169,000 mt/year of capacity to produce high carbon ferromanganese and ferrosilicomanganese.
The project is championed by South Africa's Assmang Limited and has an unnamed Japanese company as an investment partner, CSC said in a statement. It did not state the equity interests of the two companies.
The investment will guarantee CSC 30,000-32,000 mt/year of ferromanganese, which will fulfill one-third of the steelmaker's requirement for the ferroalloy.
The investment will provide CSC with a stable supply of the raw materials and lower raw material costs, said CSC, Taiwan's largest integrated steelmaker.
CSC officials could not be reached for further comment.Edited by SHMET