Tharisa PLC Strategic cooperation agreement with China's TISCO (8160O)
24 August 2017 - 4:00PM
UK Regulatory
TIDMTHS
RNS Number : 8160O
Tharisa PLC
24 August 2017
Tharisa plc
(Incorporated in the Republic of Cyprus with limited
liability)
(Registration number HE223412)
JSE share code: THA
LSE share code: THS
ISIN: CY0103562118
('Tharisa')
Tharisa enters into a strategic co-operation agreement with
China's TISCO
Tharisa has entered into a strategic co-operation agreement with
Shanxi Taigang Wanbang Furnace Charge Co., Ltd., a Taiyuan Iron
& Steel (Group) Co., Ltd. (TISCO) joint venture company
(JV).
Tharisa will supply the JV with a minimum of 240 ktpa, being
approximately 25% of its metallurgical grade chrome concentrate
production, at market prices from September 2017 for five
years.
Tharisa has historically supplied metallurgical grade chrome
concentrates to the JV and has a demonstrated ability to supply the
required volume and quality of material on a regular basis,
culminating in the strategic co-operation agreement.
TISCO produces approximately 4 Mt of stainless steel a year and
through its JV has installed 700 ktpa Outokumpu ferrochrome (FeCr)
sintering and pelletising capacity with an annual producing volume
of 300 kt FeCr. With the advent of more stringent environmental
regulations in China, the ferrochrome industry is switching from
open and semi-closed furnaces to more efficient and environmentally
friendly technologies.
TISCO typically purchases approximately 1 Mtpa of ferrochrome to
feed its steel plants. It also produces approximately 300 ktpa of
FeCr from its JV. One of the world's largest stainless steel
producers, TISCO is considering a phase 2 expansion of the
Outokumpu FeCr sintering and pelletising plant, which would
increase its FeCr production to 450 ktpa and subsequently increase
its requirements for metallurgical chrome concentrate.
"Tharisa is pleased to have formalised its relationship with
TISCO, a long-time client. The co-operation agreement further
cements our position in the Chinese market and underpins our order
book. It is also encouraging to note that spot chrome prices have
increased above US$200/t on the back of improved stainless steel
production," says Tharisa CEO Phoevos Pouroulis.
Paphos, Cyprus
24 August 2017
JSE Sponsor
Investec Bank Limited
Investor Relations contact:
Tharisa plc
Sherilee Lakmidas
+27 11 996 3538
+27 79 276 2529
slakmidas@tharisa.com
Broker contacts:
Peel Hunt LLP (Joint Broker)
Ross Allister/ Chris Burrows
+44 207 7418 8900
BMO Capital Markets Limited (Joint Broker)
Jeffrey Couch/Neil Haycock/Thomas Rider
+44 020 7236 1010
Financial PR contacts:
Buchanan
+44(0) 20 7466 5000
tharisa@buchanan.uk.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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