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Tharisa formalises chrome supply deal with the Chinese

Last updated: 10:04 24 Aug 2017 EDT, First published: 03:26 24 Aug 2017 EDT

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The deal will run for five years and starts next month

Platinum group metals and chrome producer Tharisa PLC (LON:THS) said it has inked a strategic co-operation agreement with the Shanxi Taigang Wanbang Furnace Charge Co, a joint venture company of the Chinese giant Taiyuan Iron & Steel Co (TISCO).

The five-year deal, which starts next month, will see Tharisa supply a minimum of 240,000 tonnes of metallurgical-grade chrome concentrate, which is around a quarter of its production.

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"Tharisa is pleased to have formalised its relationship with TISCO, a long-time client,” said chief executive Phoevos Pouroulis in a statement.

“The co-operation agreement further cements our position in the Chinese market and underpins our order book. 

He also said it was “encouraging to note” that spot chrome prices have increased above US$200 a tonne on the back of improved stainless steel production.

The shares rose 15.8% to 91.5p on the back of the news. Broker Peel Hunt thinks they have further to go as it restated its ‘buy’ and 195p a share price target.

--Updates for share price, video link--

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