Yemeni businessman, Mr Shaher Abdulhak has acquired a 10% stake in South Africa-based Ferrochrome Furnaces (FCF) only a week after the first acquisition of the 50% stake in FCF by the Dubai-based entrepreneur Mr Alibek Issaev.
The joint venture with the new stakeholders from the Middle East will increase the production capacity to 420,000 tons per annum in the next 24 months and make FCF one of the largest producers of low and medium carbon ferrochrome alloys in the world.
“The introduction of these two new international players places FCF in the forefront of the competition with other overseas producers for the supply of low-cost ferrochrome. The stronger our shareholding base, the more determined we become in future to be one of the world leaders in low and medium carbon ferrochrome exports”, said FCF chairman, Mr Abbas Moti.
Mr Abdulhak’s Shaher Trading Company Limited (STCO) is one of the largest and most diversified businesses in the MENA region with interests in oil and gas, minerals, real estate and trading, while Mr Issaev’s group of companies includes the fast-growing global IT business Dudu Communications, real estate development and strategic investments. FCF, a South African-based company, is controlled by the Moti family with interests in mining and mineral beneficiation, real estate and other diversified investments.
Mr Abdulhak’s group is not new to South Africa and has been involved in mining activities before. The business alliance with FCF is in line with his group’s diversified business model including investments in South Africa. Commenting on the deal, Mr Abdulhak said his group’s due diligence study showed excellent value and growth opportunities, given the healthy worldwide demand for beneficiated low and medium carbon ferrochrome and the growth forecast for this product.
Venmyn Deloitte, a division of Deloitte worldwide, with professional expertise in the independent technical and economic assessment and review of mineral projects, conducted a two-year due diligence study to determine the viability of the project and has evaluated FCF business at 1.7 billion USD, with the number estimated to grow significantly after phases two and three.
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