The board would like to update shareholders regarding recent market reports regarding our Veremo Holdings (Pty) Ltd ("Veremo") investment.
Petmin is a 25 percent shareholder in Veremo and 75 percent is ultimately controlled by Kermas Limited ("Kermas"). Veremo is the owner of 70 percent of the Stoffberg magnatite project containing iron ore and titanium ("the Project").
Kermas Limited, Korean steel company Dongbu Steel Limited ("Dongbu") and Korean state-run KORES ("the Parties") announced last week that they had signed a Memorandum of Understanding ("MOU") to develop the Project.
In terms of the MOU the Parties intend to develop the project in Stoffberg north of Johannesburg at an estimated capital cost of $475 million, to produce 1.2 million tonnes of pig iron per year from 2013.
The two Korean firms intend to buy 50 percent of the plant's output.
Petmin's position in Veremo remains unchanged and Petmin is working closely with Kermas on all aspects of the Project and believes these recent events signal a positive trend for the future development of the project.
© 2009 Petmin Limited