China: China Magnesium Corporation Ltd (CMC) has executed and commenced a cooperation agreement with Pingyao County Fengyan Mineral Wool Co Ltd (FMW), effective from 1 February 2015. The effect of the agreement is that CMC will have a 60% economic interest in FMW, control a majority of the FMW board seats and be responsible for the management of FMW's business.
FMW is an established and profitable medium-sized metallurgy company based in Pingyao, Shanxi Province. It is a wholly-owned subsidiary of Fengyan Coal & Coke Group Company Ltd. FMW can produce 150,000t/yr of ferronickel and uses the waste slag from the ferronickel production to produce mineral wool and mineral wool acoustic board products, among other industrial products. It currently purchases all of CMC's semi-coke to use in its ferronickel production. Any external ferronickel requirements in respect of CMC's recycling and production are also currently supplied to CMC by FMW.
