In March, Chemours initiated a strategic review to assess the potential sale of its mining solutions business
Chemours Mining Solutions posted net sales of $203m in 2020. (Credit: Alex Banner from Pixabay.)
Australia-based explosives company Orica, and private equity firms Littlejohn and One Rock Capital have reportedly submitted bids to acquire US chemical firm Chemours’ mining solutions business.
In March, the Wilmington, Delaware-headquartered Chemours announced a strategic review to assess the potential sale of its mining solutions business, which is part of Chemours Chemical Solutions segment that serves nearly 300 customers globally.
The company’s unit could be valued at more than $600m and talks over the deal are currently an early stage, reported Bloomberg, citing people familiar with the matter.
Chemours’ mining solutions business is one of the largest North American producers of solid sodium cyanide, which is used for the environmentally friendly and cost-effective extraction of gold and silver from mined ores.
For the strategic review process, Chemours hired Gordon Dyal & Co. Advisory Group.
At that time, Chemours president and CEO Mark Vergnano had said: “Optimizing and focusing our portfolio continues to be a top strategic priority for Chemours.
“Our overall goal and intent are to position every one of our businesses, including Mining Solutions, to deliver the highest level of profitable growth possible, for the benefit of all our stakeholders.”
According to Chemours’ annual report, the company’s mining solutions product group includes sodium cyanide and hydrogen cyanide product lines.
Currently, the mining solutions unit operates its solid sodium cyanide plant in Memphis, Tennessee, US. A new solid sodium cyanide plant is expected to be opened in Durango, Mexico.
The acquisition comprised a mineral sands processing plant in Offerman, Georgia, an existing mine site in Charlton County Georgia, and administrative offices in Jacksonville, Florida.
Chemours Mining Solutions posted net sales of $203m in 2020, down 24% compared to the sales recorded in 2019.
In August 2019, Chemours announced the acquisition of Jacksonville, Florida-headquartered Southern Ionics Minerals (SIM), a minerals exploration, mining, and manufacturing company.