Samancor and Minmetals, how sweet is that?

Everyone is wondering how the recent run up in chrome ore and charge chrome prices will affect the long rumored takeover of Samancor by Minmetals. Obviously the final price will have to be adjusted and some sort of profit participation is possible.

The deal could be significant for the entire industry. No only is it the second largest South African producer but it has SIGNIFICANT chrome ore reserves. Since it makes more sense to export the ore to China than smelt in South Africa, the Samancor deal could be a harbinger of similar deals.

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