Global commodities trading house Traxys Group has agreed to take a 20 per cent interest in Perth-based tantalum miner Global Advanced Metals, subject to Foreign Investment Review Board approval.
The Traxys investment, by subsidiary Traxys Tantalum LP, will also result in the establishment of a new trading company, GAMTRAX, which will trade tantalum products exclusively.
A Traxys representative will sit on the GAM board following FIRB approval.
GAM chief executive Bryan Ellis said the company and GAMTRAX were committed to the responsible supply of tantalum to the market, and would only trade in "non-conflict" products.
"Traxys recognises Global Advanced Metals is a leading supplier of "conflict free" tantalum concentrate and with the establishment of our own trading company, supported by Traxys' extensive market network, we can expand our range of products and services to the tantalum industry," Mr Ellis said.
Terms of the acquisition were not disclosed.
Earlier this year, GAM announced it was reopening its Wodgina tantalum project and Greenbushes processing plant in the Pilbara.
The operation began processing tantalum ore last month.
The projects were placed into hiatus during the global financial crisis in 2008, when reduced demand for electronics and illegally or unethically mined tantalum sourced from the Democratic Republic of Congo made tantalum mining in Australia unprofitable.
At full capacity, GAM's Wodgina operation is capable of producing 1.4 million pounds of tantalum peroxide annually, which equates to about a third of the world's supply.
The initial restart will see Wodgina operate at about half capacity, or 700,000lbs per annum, which will be processed at GAM's Greenbushes facility.
GAM also has an agreement in place to purchase 200,000lbs per annum of tantalum peroxide from the Galaxy Lithium Mine, which will also be processed at Greenbushes.
