[miningmx.com] — Exxaro Resources said on Monday it has finalised the sale of its 50.04% interest in Rosh Pinah Zinc to Glencore International.
The selling price was R931m, subject to final adjustment for net debt and working capital changes. The effective date of the transaction is June 1.
Said Sipho Nkosi, Exxaro CEO: “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.
“The completion of the transaction to a large extent concludes our divestment
plan.”
Production of zinc 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 89,000 tonnes of zinc concentrate
and 16,000 tonnes 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.
