Mumbai, India — MININGREVIEW.COM — 06 December 2010 – Sterlite Industries (India) Limited “’India’s largest non-ferrous metals and mining company and a unit of London-listed Vedanta Resources “’ has announced the completion of the acquisition of the Skorpion zinc mine in Namibia from Anglo American plc for a cash consideration of approximately US$707 million (R5 billion).
On 10 May 2010, Vedanta announced the acquisition of Anglo American’s zinc assets for a total cash consideration of US$1 338 million (R9.3 billion), on an attributable, debt and cash free basis. Anglo Zinc comprises the 100%-owned Skorpion mine in Namibia, the 100% owned Lisheen mine in Ireland, and the 74% owned Black Mountain Mines, which include the Black Mountain mine and Gamsberg project in South Africa.
Skorpion has been acquired by a subsidiary of Sterlite Infra Limited, itself a wholly owned subsidiary of Sterlite. It was intended that the acquisition of Anglo Zinc would be undertaken by Hindustan Zinc Limited, another subsidiary of Sterlite. This was subject to approval from the Indian Government as shareholder, which was not received within the contractual completion timeline for Skorpion.
The acquisitions of the Lisheen mine and Black Mountain Mines are expected to be completed on schedule.
“Anglo Zinc is an excellent operational and strategic fit with our existing business and will create significant long-term value for shareholders,” a company statement said. “This acquisition will consolidate our position as the world’s largest integrated zinc-lead producer with significant reserves and resources of 478Mt.
Commenting on the transaction, Sterlite chairman Anil Agarwal: “We are delighted to have completed the first phase of the acquisition of Anglo Zinc assets. Skorpion Zinc Mine is a high quality zinc asset and will complement our existing portfolio.”