South African miner Exxaro Resources is planning to monetize remaining 24% stake in Tronox in a bid to focus on core activities.
In October 2017, the mining company completed the sale of $474m worth stake in Tronox, which is engaged in the mining, production and marketing of inorganic minerals and chemicals.
Exxaro said that it will continue to assess market conditions for further possible sell downs in its remaining stake in Tronox.
The firm said in a statement: “Exxaro’s investment in Tronox is non-core and its Board has determined that it will explore available alternatives to monetise its stake in Tronox in a thoughtful, efficient and staged process over time.”
The disposal of the remaining share in Tronox will be subject to shareholder approval. Exxaro’s stake in Tronox is valued at approximately $476m, assuming a share price of $16.57 per share.
The firm plans to use the proceeds from the latest sale to fund capital commitments, repay debt and to distribute capital to shareholders.
Tronox is engaged in mining and processing of titanium ore, zircon and other minerals, and manufactures titanium dioxide pigments required for paints, plastics, paper, and other everyday products.
The firm operates mines and mineral processing plants in South Africa and Australia as well as pigment manufacturing plants in the US, the Netherlands, and Australia.
Exxaro Resources’ asset portfolio comprises coal operations and investments in iron ore, pigment manufacturing, renewable energy (wind), and residual base metals. It has operations in South Africa, Europe, Australia and the US.