Johannesburg, South Africa — MININGREVIEW.COM — 21 July 2010 – One of South Africa’s largest diversified mining companies, Exxaro has confirmed that it has not yet opened talks with London-listed Vedanta Resources Plc over the sale of Exxaro’s zinc mine in Namibia.
Exxaro spokesman Riaan Smit said the company, which planned to sell all its zinc assets, would engage with potential buyers at a later stage.
The New Era newspaper in Namibia reported yesterday that negotiations between Exxaro and Vedanta over the Rosh Pinah zinc mine had reached an advanced stage.
“We are not in detailed negotiations with Vedanta at this moment. We are still busy with a few things on our side to make sure that we get fair value for our assets, and to be sure that we are ready for the process,” Smit told Reuters.
Earlier this year, Vedanta acquired Anglo American’s zinc interests for US$1.34 billion (R10 billion), including its Namibian Skorpion Zinc operation, the Black Mountain mine, the Gamsberg project in South Africa and Lisheen mine in Ireland.
Vedanta paid US$698 million (R5.2 billion) for Skorpion Zinc, which is adjacent to the Rosh Pinah mine.
Exxaro owns 50.4% of Rosh Pinah, which produced 94 000 tonnes of zinc concentrate and 20 000 tonnes of lead in 2009, while the balance of the shares are held by Namibian empowerment groups.