Pretoria, South Africa — 14 June 2012 – South African-based and JSE-listed mining group Exxaro Resources Limited “’ through its wholly-owned subsidiary Exxaro Base Metals and Industrial Minerals Holdings (Proprietary) Limited “’ has completed the disposal of its entire 50.04% shareholding in, and claims against, Rosh Pinah Zinc Corporation (Proprietary) Limited to wholly-owned subsidiaries of Glencore International plc.
A company statement released here confirmed that the selling price was R931 million, which was subject to final adjustment for net debt and working capital changes. The effective date of the transaction was 1 June 2012.
Exxaro CEO Sipho Nkosi commented: “The divestment of Exxaro’s interest in Rosh Pinah forms part of our strategic plan to divest from our zinc assets, a decision made in the context of the difficult conditions of the zinc market, including its cyclical nature, low margins, the significant impact of the exchange rate and higher electricity costs. Completion of this transaction to a large extent concludes our divestment plan,” he added.
Production at the group’s Zincor operation ceased in December 2011.
The Rosh Pinah mine is situated in south-western Namibia, 800km south of Windhoek. The underground operation produced 89 000t of zinc concentrate and 16 000t of lead concentrate during 2011.
Exxaro continues to hold 26% of Black Mountain, which owns the Black Mountain zinc and lead mine and the Gamsberg zinc project in the Northern Cape, as well as an effective 22% interest in the Chifeng zinc smelter in China. The group continues to seek appropriate buyers for these assets.
Source: Exxaro Resources Limited. For more information, click here.