Trading company Traxys has made an offer to buy Tata Steel's 150,000 tpy KZN ferro-chrome plant in Richards Bay, South Africa, Metal Bulletin understands
The offer has been accepted by the business rescue practitioners of Tata Steel KZN, subject to the approval of the company itself.
The latest move by Traxys, in which the Carlyle Group and affiliates of hedge fund manger Louis Bacon own a majority stake, follows the company's dramatic acquisition of the rights to market cobalt metal rounds produced by Vale.
Tata Steel's ferro-chrome subsidiary in South Africa, which produces 150,000 tpy of high-carbon ferro-chrome, went into business rescue in July 2015 and said at the time it had held talks with interested parties with a view to being acquired.
Traxys declined to comment.
Tata was not available for comment.
The Richards Bay plant is one of four South African ferro-chrome producers that have failed or been put up for sale in the past year due to low prices for ferro-chrome and rising costs.
Metal Bulletin's charge chrome index, cif Shanghai, stands at 73 cents per lb, compared with 78 cents in June 2015.
The ferro-chrome subsidiary of International Ferro Metals went into business rescue in September 2015, followed by ASA Metals in March this year.
Mitsubishi said in May it is considering a sale of its Hernic Ferro-chrome subsidiary
Source: Metal Bulletin
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