AMG signs definitive agreement to acquire antimony mining rights and secure future raw material supply
(Thomson Reuters ONE) -
Amsterdam, 30 August 2010 --- AMG Advanced Metallurgical Group N.V. ("AMG",
EURONEXT AMSTERDAM: "AMG") has signed a definitive agreement to acquire
significant antimony mining rights and an adjacent antimony metal smelter in
Turkey for a total investment of up to approximately $20 million, including the
assumption of certain liabilities, other operational improvements, and options
to acquire additional mining rights. The acquisition is subject to certain
regulatory approvals and is expected to be closed within 30 days.
The strategic rationale of the acquisition is to secure supply of antimony metal
used in AMG's antimony trioxide operation for the specialty chemical flame
retardant market. AMG is the largest producer of antimony trioxide in Europe,
processing over 10,000 tons of antimony metal per annum. In June 2010, the
European Commission identified antimony as one of 14 critical raw materials for
the European Union.
AMG expects that the acquisition will contribute substantially to increasing the
profitability and cash generation of AMG's antimony trioxide business as the
supply of antimony metal, particularly from China, has become increasingly
restricted.
One of AMG's objectives is to reduce the volatility inherent in its specialty
material portfolio by optimizing its position in the various value chains,
including upstream integration wherever cost leadership can be obtained. In
2010 AMG has expanded its tantalum and niobium mine in Brazil, and successfully
produced chemical grade lithium concentrate from its pilot plant at the same
mine. This is a continuation of AMG's multi-mineral strategy to create
incremental products and revenues from existing resources.
About AMG
AMG creates and applies innovative metallurgical solutions to the global trend
of sustainable development of natural resources and CO(2) reduction. AMG
produces highly engineered specialty metal products and advanced vacuum furnace
systems for the Energy, Aerospace, Infrastructure and Specialty Metals and
Chemicals end markets. AMG consists of two operating divisions, Advanced
Materials and Engineering Systems, and owns interests in publicly-listed
companies Graphit Kropfmühl AG (Deutsche Börse: GKR.DE) and Timminco Limited
(TSX: "TIM").
The Advanced Materials Division develops and produces specialty metals, alloys
and high performance materials. AMG is a significant producer of specialty
metals, such as ferrovanadium, ferronickel-molybdenum, aluminum master alloys
and additives, chromium metal and ferrotitanium, for Energy, Aerospace,
Infrastructure and Specialty Metal and Chemicals applications. Other key
products include specialty alloys for titanium and superalloys, coating
materials, tantalum and niobium oxides, vanadium chemicals and antimony
trioxide.
The Engineering Systems Division designs, engineers and produces advanced vacuum
furnace systems and operates vacuum heat treatment facilities, primarily for the
Aerospace and Energy (including solar and nuclear) industries. Furnace systems
produced by AMG include vacuum remelting, solar silicon melting and
crystallization, vacuum induction melting, vacuum heat treatment and high
pressure gas quenching, turbine blade coating and sintering. AMG also provides
vacuum case-hardening heat treatment services on a tolling basis.
Graphit Kropfmühl AG is a majority controlled, publicly listed subsidiary of
AMG. Based on its secure raw material sources in Africa, China and Europe,
Graphit Kropfmühl is a specialist in the production of silicon metal and the
extraction, processing and refining of natural crystalline graphite for a wide
range of energy saving industrial applications.
Timminco Limited is a publicly listed affiliate of AMG. Timminco produces
silicon metal for the chemical, aluminum, electronic and solar industries.
Timminco also produces solar grade silicon, using its proprietary technology for
purifying silicon metal, for the solar energy industry.
With over 2,300 employees, AMG operates globally with production facilities in
Germany, the United Kingdom, France, Czech Republic, the United States, Canada,
Mexico, Brazil, and Sri Lanka and also has sales and customer service offices in
Belgium, Russia, China and Japan (www.amg-nv.com).
For further information please contact:
AMG Advanced Metallurgical Group N.V. +1 610 975 4901
Jonathan Costello
Vice President of Corporate Communications
jcostello(at)amg-nv.com
Disclaimer
Certain statements in this press release are not historical facts and are
"forward looking." Forward looking statements include statements concerning
AMG's plans, expectations, projections, objectives, targets, goals, strategies,
future events, future revenues or performance, capital expenditures, financing
needs, plans and intentions relating to acquisitions, AMG's competitive
strengths and weaknesses, plans or goals relating to forecasted production,
reserves, financial position and future operations and development, AMG's
business strategy and the trends AMG anticipates in the industries and the
political and legal environment in which it operates and other information that
is not historical information. When used in this press release, the words
"expects," "believes," "anticipates," "plans," "may," "will," "should," and
similar expressions, and the negatives thereof, are intended to identify forward
looking statements. By their very nature, forward looking statements involve
inherent risks and uncertainties, both general and specific, and risks exist
that the predictions, forecasts, projections and other forward looking
statements will not be achieved. These forward looking statements speak only as
of the date of this press release. AMG expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward looking
statement contained herein to reflect any change in AMG's expectations with
regard thereto or any change in events, conditions, or circumstances on which
any forward looking statement is based.
AMG signs definitive agreement to acquire antimony mining rights and secure
future raw material supply
[HUG#1441418]
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Source: AMG Advanced Metallurgical Group N.V. via Thomson Reuters ONE
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Datum: 30.08.2010 - 19:59 Uhr
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