Sumitomo Corp Expands Steel Raw Material Rights in South Africa

Japanese major trading house, Sumitomo Corporation announced on Wednesday the firm acquires additional rights of Assmang, South African material supplier, at 30 billion yen. Sumitomo Corp increases an indirect equity for controlling company of Assmang to about 13% from current 8%. Assmang has high quality materials including iron ore, manganese ore and chrome ore, and is expanding the mines. Sumitomo expands raw material rights and the iron steel raw material business by the investment for Assmang. Sumitomo Corp acquires a 20% stake in Oresteel from Old Mutual. Oresteel is a stakeholder in Assmang while Old Mutual is a South African biggest assurance company. Sumitomo Corp increases equity stake of Oresteel to 49%. Sacco Family has equity the rest stakes in Oresteel.Oresteel has equity stakes of 52.3% in Assore. Assore holds 50% equity in Assmang. Sumitomo Corp expands equity stake in Assmang by increased Oresteel’s equity. Sumitomo’s right increases to about 85 million tonnes for iron ore with equity, about 75 million tonnes for manganese ore and about 13 million tonnes for chrome ore.Assmang started the operation of a new iron ore mine in 2008, which increases ire ore output to 10 million tonnes per year in 2010 from 6 million tonnes, and to 14 million tonnes in 2013.