Arkema and Canada Fluorspar sign a memorandum of understanding to develop together a fluorspar mine in Canada
Arkema and Canada Fluorspar Inc. (CFI) have signed a memorandum of understanding that will enable both groups to develop a fluorspar mine in St. Lawrence (Newfoundland, Canada). The investment of some C$ 100 million will provide Arkema with long-term competitive access to strategic feedstock for its fluorochemicals operations in North America.
Fluorspar is the key feedstock in the production of hydrofluoric acid, the main raw material for the production of refrigerant gas and fluoropolymers.
Arkema is a major global player in the fluorine product chain, with production sites in North America (Calvert City, USA), Europe (Pierre-Bénite, France, and Zaramillo, Spain), and China (Changshu). With this agreement, Arkema will benefit from competitive and long-term upstream integration for the key feedstock of its North American fluorochemicals operations.
Arkema will become a significant shareholder of CFI through a 19.9 % equity stake, as the initial key step. Additionally, both companies have agreed to develop and operate jointly the St. Lawrence mine through a 50/50 joint venture, with anticipated start-up scheduled early 2013.
Finally, under the terms of the agreement, both groups will share mined ore production on an equal basis.
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