Assore buys ARM's stake in chrome mine

Johannesburg - Iron ore producer Assore [JSE:ASR] said on Thursday it had bought out African Rainbow Minerals' [JSE:ARI] (ARM) 50% stake in the country's Dwarsrivier chrome mine for R450m to take full ownership.

Assore said in a statement that the long-term fundamentals for the chrome ore market supported an investment in the commodity and that the acquisition would help the firm expand its chrome capacity.

The Dwarsrivier chrome mine was owned by Assmang, a joint venture between Assore and diversified miner ARM. The sale of ARM's stake is pending approval from the mines ministry, Assore said.

As of June 2014 Dwarsrivier mine, located in Mpumalanga province, had an attributable net profit after tax of R68m.

Shares in Assore edged down 0.54% to R109, having more than halved in value over the last year as prices for its main commodity iron ore plunged.