Arkema and Canada Fluorspar Incorporated (CFI) have signed a memorandum of understanding that will enable both groups to develop a fluorspar mine in St Lawrence, Canada.
According to a statement, the investment of CAD100m (£63m) will provide Arkema with long-term competitive access to strategic feedstock for its fluorochemicals operations in North America.
Fluorspar is the key feedstock in the production of hydrofluoric acid, the main raw material for the production of refrigerant gas and fluoropolymers.
With this agreement, Arkema will reportedly benefit from competitive and long-term upstream integration for the key feedstock of its North American fluorochemicals operations.
Arkema will become a significant shareholder of CFI through a 19.9 per cent equity stake, as the initial key step.
Additionally, both companies have agreed to develop and operate the St Lawrence mine through an equal joint venture, with anticipated start-up scheduled for early 2013.
Both groups will share mined ore production on an equal basis.