Australia-based explosives manufacturer Orica and private equity firms Littlejohn and One Rock Capital are among the entities that have submitted bids to acquire US chemical firm Chemours’ mining solutions business.
The asset could be valued at more than $600m, reported Bloomberg, citing people familiar with the matter.
The firm has received indicative offers, and the binding bids could be expected as soon as next month.
Earlier this year, Chemours announced a strategic review of the mining solutions business, which is claimed to be one of the largest North American producers of solid sodium cyanide.
Solid sodium cyanide is a key component required for the extraction of gold and silver from mined ores.
At that time, Chemours president and CEO Mark Vergnano had said: “Our overall goal and intent are to position every one of our businesses, including Mining Solutions, to deliver the highest level of profitable growth possible, for the benefit of all our stakeholders.”
The business currently operates its solid sodium cyanide plant in Memphis, Tennessee, US. This is claimed to be the largest solid sodium cyanide plant in the world.
A new solid sodium cyanide plant is scheduled to open in Durango, Mexico, the company stated on its website.
Talks are currently at an early stage, and the companies may decide not to go ahead with the bids, the sources told Bloomberg.
The chemical firm hired Gordon Dyal & Co. Advisory Group to assist with the strategic review.
According to the company’s annual report, Chemours Mining Solutions reported net sales of $203m last year, which is a 24% decrease from 2019.