Afarak, a Finnish alloy producer, has finalized an agreement to purchase mining rights for magnesite mines from the Serbian refractory material producer Magnohrom, which is insolvent, for 1 million euros ($1.2 million). This acquisition follows Afarak’s successful completion of a two-year sintered magnesite test project at the Magnohrom plant. With confirmed reserves exceeding 4 million tonnes of ore, Afarak intends to enhance operations and upgrade technology and equipment at the mines and processing units.
“This acquisition enables Afarak to meet the growing demand in the refractory material industry…,” commented CEO Guy Konsbruck.
In March, Serbia’s Bankruptcy Supervision Agency approved a bid by logistics firm Nelt Group to acquire Magnohrom’s electrothermal products factory in Kraljevo.
Afarak specializes in sustainable growth, operating in specialty alloys in southern Europe and ferroalloys in South Africa. The company is listed on NASDAQ Helsinki and the London Stock Exchange’s main market.
Magnohrom was declared insolvent by the Kraljevo commercial court in September 2016, with outstanding liabilities amounting to 4.1 billion dinars ($40.8 million/34.8 million euros).