HOFFMAN ESTATES, Ill., August 24, 2009 /PRNewswire-FirstCall/ -- AMCOL International Corporation , is announcing terms of a transaction involving a change in the ownership structure for one of its investments in South Africa. Through a subsidiary, AMCOL has increased its investment in Volclay South Africa (Proprietary) Limited from 51% to 90% ("VSA"). Niemcor Africa (Proprietary) Limited will continue to own the remaining interest. VSA is a holding company that owns all of the shares of Volclay South Africa Trading (Proprietary) Limited ("VTA"). In exchange for selling a portion of its VSA shares to AMCOL, Niemcor received certain assets owned by VTA, including its chromite processing plant.
Separately, VTA and Niemcor have entered into supply agreements whereby the parities will offer each other foundry-grade and metallurgical-grade chromite on a preferential basis. This transaction does not impact AMCOL's ownership interest in a chromite mine in South Africa. Details on this investment are described in a press release issued on February 23, 2009.
Gary Castagna, President, Global Minerals & Materials, commented "We considered this an appropriate time to concentrate our efforts on the new plant to be constructed on Ruighoek Farm. Niemcor will continue to be a valued partner in South Africa. They will continue to supply us foundry-grade chromite while the new plant is under construction. We are on track to commission the new facility in April next year."
Headquartered in Hoffman Estates, Illinois, AMCOL International has five reporting segments: Minerals, Environmental, Oilfield Services, Transportation and Corporate. The Minerals segment produces and markets specialty minerals and related materials used as a performance additive in industrial goods and consumer products. The Environmental segment manufactures and markets engineered materials used in, and provides related services for, construction, waste containment and civil infrastructure applications. The Oilfield Services segment provides filtration and other related services to oil and gas production and exploration customers. AMCOL's common stock is traded on the New York Stock Exchange under the symbol "ACO." The Company's website is http://www.amcol.com/.
AMCOL International Corporation
CONTACT: Don Pearson, Vice President & CFO of AMCOL International
Corporation, +1-847-851-1626
Web Site: http://www.amcol.com/
