Berkshire Hathaway Inc. (NYSE: BRK.A) Israeli unit Iscar Ltd. (IMC Metalworking Companies) has agreed to invest $80 million in Woulfe Mining Corp's (TSX: WOF) Sandong project in South Korea. The mine was once the world's biggest tungsten producer.
"Mining Weekly" reports that the deal involves Iscar acquiring a 25% stake in the shuttered mine for C$35 million, and investing C$19.25-million in a joint venture to build a plant that will produce ammonium paratungstate (APT), the metal’s tradable form, and agreeing to provide up to C$15.75-million in a loan to fund Woulfe’s share of the capital cost of the plant.
Woulfe CEO Brian Wesson told "Mining Weekly" that the Sandong mine, and the APT plant will start producing early in 2013, when the operation will again become the world’s biggest producer, accounting for 7% to 10% of global output - and half of non-Chinese supplies.
To achieve this, according to "Mining Weekly" Iscar will need to raise around another C$80 million in debt.
In 2006, Warren Buffett controlled Berkshire Hathaway bought an 80% stake in metal cutting tool producer Iscar, headquartered in the Tefen Industrial Park in the Galilee for $5 billion from the Wertheimer family.
Published by Globes, Israel business news - www.globes-online.com - on March 5, 2012
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