The Group has entered into a strategic partnership with Fujian Wuhang, one of the largest privately-owned stainless steel producers in China, to construct the Tharisa Ferrochrome Smelter, a ferrochrome smelting facility located in Luoyuan Bay, Fujian Province, China, at a coastal site adjacent to the Baosteel Desheng Stainless Steel Plant. The smelter will be owned by Tharisa Fujian Industrial, as a wholly foreign-owned enterprise. Fujian Wuhang has a call option to acquire 15% of Tharisa Fujian Industrial.
The shareholders of Tharisa Fujian Industrial are assisting with the securing of relevant licenses and permits and the provision of logistical support for the development of the Tharisa Ferrochrome Smelter. The directors believe that by the time the smelter is fully operational, in 2014, it will hold the design capacity to produce 600ktpa of charge chrome.