Foskor Buys R95M Phalaborwa Chemical Plant
PHALABORWA- Chemoil group Sasol announced today that it had reached an in principle sale to Foskor and the Industrial Development Corporation of Sasol Nitro's phosphoric acid plant at Phalaborwa for R95 million.
The companies have agreed that Foskor will acquire the productive and storage assets of Sasol Nitro's phosphoric acid plant.
Sasol will retain the gypsum disposal dumps and will allow Foskor to deposit gypsum by-products from the plant onto the dumps for up to four years.
Thereafter, Foskor will either take over the dumps or Sasol will close and rehabilitate them.
Certain Sasol employees at the plant will be offered employment by Foskor on transfer of the assets to Foskor.
"This agreement will save many jobs. Current and predicted economic conditions have made the production and marketing of phosphoric acid unsustainable for Sasol. Our options were either to close our plant and risk the loss of 250 permanent jobs or to dispose of the business as a going concern," Sasol Chief Executive Pieter Cox said in a statement.
"This acquisition will supplement Foskor's operations in Richards Bay and ensure continued viability of our mining operation in Phalaborwa. It should be a win-win situation for all involved, especially Sasol employees and the Phalaborwa community," Foskor Chief Executive Alfred Pitse said.
The agreement is subject to regulatory approvals and negotiation of the terms of a final agreement.
The companies have agreed that Foskor will acquire the productive and storage assets of Sasol Nitro's phosphoric acid plant.
Sasol will retain the gypsum disposal dumps and will allow Foskor to deposit gypsum by-products from the plant onto the dumps for up to four years.
Thereafter, Foskor will either take over the dumps or Sasol will close and rehabilitate them.
Certain Sasol employees at the plant will be offered employment by Foskor on transfer of the assets to Foskor.
"This agreement will save many jobs. Current and predicted economic conditions have made the production and marketing of phosphoric acid unsustainable for Sasol. Our options were either to close our plant and risk the loss of 250 permanent jobs or to dispose of the business as a going concern," Sasol Chief Executive Pieter Cox said in a statement.
"This acquisition will supplement Foskor's operations in Richards Bay and ensure continued viability of our mining operation in Phalaborwa. It should be a win-win situation for all involved, especially Sasol employees and the Phalaborwa community," Foskor Chief Executive Alfred Pitse said.
The agreement is subject to regulatory approvals and negotiation of the terms of a final agreement.
Labels: mining, Phalaborwa
posted by Kruger2Canyons.com at
Tuesday, January 11, 2005
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