Salim to increase stake in Aussie vanadium miner

Indonesia?s billionaire Anthoni Salim through his Droxford International Ltd is offering US$33 million in financial lifeline for ASX-listed Atlantic Ltd to help avoid the company from going bankrupt and maintain the development of one of the world?s largest vanadium miner, The Wall Street Journal reported.

The Australian miner has been in financial trouble following a fire incident at its plant in Windimura Vanadium project in Western Australia. The Journal quoted three people familiar with the matter that Salim and mainly US bondholders are now in advanced talks for a rescue deal.

The Salim Group, Indonesia?s well diversified conglomerate, currently owns 17.42 percent stake in Atlantic, whose shares have been suspended since early this month following the fire incident. Atlantic shares have been under pressure over the past year amid the plunge in the price of vanadium, an industrial metal used to strengthen steel end-products.

Atlantic and Salim declined to comment to the report.

Atlantic subsidiary Midwest Vanadium Pty Ltd owns 100 percent of the Windimurra vanadium and iron ore operation, located approximately 600 kilometers north of Perth in Western Australia. Windimurra hosts one of the largest proven vanadium reserves in the world. Its processing plant is in production, producing ferrovanadium and iron ore. (*)