Glencore buys 80% stake in Rosh Pinah Zinc
Glencore International has acquired an 80.08% stake in Rosh Pinah Zinc Corporation, a zinc and lead miner in Namibia, for an undisclosed sum.
A subsidiary of Glencore acquired 50.04%, held by Exxaro Base Metals and Industrial Holdings in Rosh Pinah, and a further 30.04% from PE Minerals and Jaguar Investments Four.
The transaction is subject to conditions precedent, including obtaining required regulatory approvals.
Glencore co-director of the zinc / copper / lead department Daniel Maté said that the Rosh Pinah will add further value to the company's portfolio of diverse zinc operations.
"We look forward to completing this acquisition in due course," added Maté.
PE Minerals, Jaguar and the Rosh Pinah Employee Empowerment Participation Scheme Trust will hold the remaining 19.92% equity interest in the Rosh Pinah.
Rosh Pinah operates an underground zinc / lead mine in south-western Namibia. The current economic mine life is eight and a half years based on zinc concentrate production of 95,000tpa.
Currently, intensive on-mine exploration is underway to add to the total mineral resource base of 8Mt.
The Rosh Pinah mine produced 101,000t of zinc concentrate and 19,000t of lead concentrate last year.
Exxaro Resources CEO Sipho Nkosi told Mining Weekly that Exxaro's decision to dispose of its shareholding in Rosh Pinah and to close Zincor was done due to the cyclical nature of the zinc market, the industry's low margins, exchange rate volatility and higher electricity prices.
Glencore is an integrated producers and marketers of commodities headquartered in Baar, Switzerland.