South African iron ore producer Assore said on Thursday it had bought out African Rainbow Minerals' s (ARM) 50 percent stake in the country's Dwarsrivier chrome mine for 450 million rand ($37 million) to take full ownership.
[DATA ASR: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 [DATA ARI: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 68 million rand.
Shares in Assore edged down 0.54 percent to 109 rand, having more than halved in value over the last year as prices for its main commodity iron ore plunged.