Consumables

BASF Venture Capital GmbH invests in Deutsche Rohstoff AG

Thursday 08. May 2008 - BASF Venture Capital GmbH, Ludwigshafen, is investing in Deutsche Rohstoff AG, Heidelberg. Deutsche Rohstoff AG, a private company, is primarily involved in exploration of industrial metals, precious metals and rare earth elements, and has access to proven raw material reserves.

Deutsche Rohstoff AG’s current portfolio includes rights to various ore deposits in Germany whose main resources are tin, tung-sten, copper, zinc and the rare earth elements cerium and lanthanum. The company is also involved in international exploration projects. Deutsche Rohstoff’s aim is to establish itself as a German-based raw material producer.

In the current financing round, Deutsche Rohstoff raised €4 million, of which €2 million was contributed by BASF Venture Capital. The in-vestment provides BASF with long-term options for further access to rare earth elements and metal raw materials. Rare earth elements have unique catalytic, optical and magnetic properties, and in recent years have become established as important components of many high-tech products such as flat screens, energy-saving light bulbs and hybrid motors. At BASF, rare earth elements are primarily used to manufacture automotive and industrial catalysts. The strong global demand for industrial metals and rare earth elements in recent years has led to a supply shortage and sharp price increase for these resources.

“The investment in Deutsche Rohstoff AG is an exciting pilot project to supplement our long-term supply for metals and rare earth elements,” comments Roberto Gualdoni, head of Global Procurement Raw Materials at BASF. “We see good prospects of achieving that goal with the highly qualified management of Deutsche Rohstoff AG, which has an excellent network of cooperation partners in the mining industry,” adds Dr. Bernhard Mohr, Investment Manager with BASF Venture Capital GmbH.

“We are pleased about the investment of BASF Venture Capital GmbH, which is an important partner for us,” says Dr. Titus Gebel, co-founder and Chief Executive Officer with Deutsche Rohstoff AG. “BASF Venture Capital GmbH has longstanding expertise in the development of young companies like Deutsche Rohstoff AG and can provide excellent sup-port for the future development of our business.”