German specialty chemical producer Lanxess is selling its 74% stake in a South African chrome ore mine to Clover Alloys, a local supplier of chrome fine ores.  Financial details were not disclosed.

The transaction, which is subject to approval by the relevant authorities, is expected to complete by the end of 2020. A 26% shareholding will remain with DIRLEM, which representis employees and some private investors.

The chrome ore from the mine is used as a raw material in the ferrochrome and chemical industry and in foundry applications. The mine employs some 500 staff and more than 1000 contractors.

In August this year, Lanxess withdrew from the chrome chemicals business, selling its assets to China’s Brother Enterprises. Part of the Cologne-based company’s leather business unit, the activities have annual revenue of around €100 million.

“We have clearly focused our portfolio on specialty chemicals in recent years and are systematically continuing along this path. Following the sale of our chrome chemicals business, it is therefore strategically logical to also divest our stake in the chrome ore mine as a key source of raw materials for this business,” said Rainier van Roessel, member of the Lanxess managing board.