Hermes-Sojitz, an international direct investments fund, has sold its 60.3% stake in Sinopac, a company involved in exploration and mining of rare earth metals in Africa, for $340m.

Share purchaser was not disclosed. 

Hermes-Sojitz said that exploration and mining of rare earth metals is one of the most promising and profitable industry sectors. 

Rare earth metals, which are represented by 17 elements of the periodic (Mendeleev) table, are widely used in manufacturing high tech and bulk products, including mobile phones, flat TVs and microwave ovens.

Demand for rare earth metals increases by 10-15 % per year.

Naoki Matsumura, Chairman of Board of Directors of Hermes-Sojitz, said: “More than half of world reserves of carbonatite rocks of magmatic origin are located in Africa. These rocks are regarded as the best raw material for mining of rare earth metals.” 

“That is why Africa is head and shoulders above the rest in mining rare earths from carbonatite rocks.”

Hermes-Sojitz, an alliance of Asian and European shareholders, has been implementing projects in Africa for several years. 

The fund invests in exploration and mining of mineral deposits, food industry and development. 

In addition, the fund has opened several fish-canning factories.

Moreover, special attention is paid to hotel industry development. 

Hermes-Sojitz representatives believe that “closing the latest highly profitable deal shall help the fund to enhance its influence in Africa and relations between the fund and local missions”.