OM Group sold its downstream operations, including cobalt refinery assets in Kokkola, Finland, to a joint venture including Freeport-McMoRan Copper & Gold Inc. for up to $435 million.

The sale is expected to close by April 2013; other venture members are Lundin Mining and La Generale des Carrieres et des Mines (Gecamines). An initial cash consideration of $325 million and future payments of up to $110 million are expected given revenue targets over three years.

“The divestiture is the final step in exiting our legacy commodity businesses to move into technology-based businesses with attractive growth prospects,” said CEO Joe Scaminace. “The company will be well-positioned to achieve core strategic objectives with a strong balance sheet.”

The move will expand the technology-based industrial growth company’s positions into current electronic, automotive, aerospace, industrial and renewable energy markets. Within the transaction, OM will transfer its assets in, GTL, a joint venture based in the Democratic Republic of Congo to the joint venture partners.

Resource Center Whitepapers, Videos, Case Studies

Let's stay in touch!

All of the latest mining news and our digital edition sent to your inbox once a week.

We'll never share your email address, and you can opt out at any time, we promise.