US-based chemical company Tronox has signed a definitive agreement to acquire Exxaro mineral sands operations, which produce the titanium bearing ore feedstock used in the production of titanium dioxide pigment.
Exxaro's mineral sands operations include Exxaro's 50% interest in the Tiwest joint venture with Tronox in Western Australia, along with 74% of Exxaro's KZN Sands and 74% of its Namakwa Sands operations in South Africa, in exchange for approximately 38.5% of Tronox's equity.
With the addition of the 50% interest in Tiwest, Tronox's production capacity will increase to approximately 465,000t of titanium dioxide pigment, with production capacities of 95,000t of natural rutile, 380,000t of slag and 220,000t of synthetic rutile.
In addition, Tronox will have the capacity to produce a number of other minerals including approximately 265,000t of zircon and 220,000t of pig iron.
The transaction, which has been approved by the Boards of Directors of both companies, is expected to close in the first half of 2012.
