Divested Business Advanced Materials
OM Group announced the completion of the previously-announced divestiture of our Advanced Materials business on March 29, 2013. The transactions included the sale of the downstream portion of the business, including our cobalt refinery assets in Kokkola, Finland, to a joint venture to be held by Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), Lundin Mining Corporation (TSX: LUN) and La Generale des Carrieres et des Mines (Gecamines).
In connection with the sale, OM Group also transferred our equity interests in our DRC-based joint venture known as GTL to our joint venture partners, subject to a security interest in favor of OM Group with respect to the joint venture's performance of certain supply arrangements.
Following the sale, to assist the buyer of the downstream business with the ownership transition, OM Group will act as an intermediary of cobalt supply between GTL and the Freeport joint venture under a two-year agreement subject to delivery of 7,000 MT of feed. Also, OM Group will continue to serve as the U.S. distributor for refined cobalt products for a period of one year. Both of these transition service agreements are back-to-back arrangements with minimal profit or cash flow impact anticipated for OM Group.