13 Nov 2009 10:40

Jinchuan Group pulls out of Kwale deal

Shanghai. November 13. INTERFAX-CHINA - Jinchuan Group Ltd., China's largest nickel producer, has given up its plan to purchase a 70 percent stake in the Kwale titanium project owned by Toronto Stock Exchange-listed Tiomin Resources Inc., according to a Tiomin announcement on Nov. 9.

Jinchuan group decided to terminate its investment plan in the Kwale project in late October, just after Tiomin was given the go ahead by the Kenyan government to complete the deal. Tiomin speculates that Jinchuan Group was negotiating supply contracts elsewhere while proceeding with the Tiomin transaction and said it will continue to seek partners for the project.

The Kwale project, located approximately 40 kilometers south of Mombasa, the largest port city in eastern Africa, contains 38.9 million tons of proven heavy metal ore reserves, including titanium and zircon, grading 7.1 percent, as well as 78 million tons of probable ore reserves. The project is designed to produce 330,000 tons of ilmenite, 75,000 tons of rutile, and 40,000 tons of zircon per annum. Jinchuan Group currently holds an 18.52 percent stake in Tiomin.-LCL