Glencore International reported in mid-December 2011 that a subsidiary had entered into an agreement with Exxaro Base Metals and Industrial Holdings to acquire Exxaro’s entire 50.04% shareholding in Rosh Pinah Zinc Corp., which operates the Rosh Pinah underground zinc-lead mine in southwest Namibia, 800 km south of Windhoek. Glencore also concluded an agreement with two other Rosh Pinah shareholders, P E Minerals (Namibia) and Jaguar Investments Four, to acquire a further 30.04% shareholding in Rosh Pinah, such that Glencore will hold an 80.08% interest in Rosh Pinah. PE Minerals, Jaguar, and the Rosh Pinah Employee Empowerment Participation Scheme Trust will hold the remaining 19.92%.
The values of the cash transactions were not disclosed.
The Rosh Pinah mine has a current economic life of 8.5 years based on zinc concentrate production of 95,000 mt/y. The mine produced 101,000 mt of zinc concentrate and 19,000 mt of lead concentrate during 2010.
Exxaro’s sale of its Rosh Pinah interest is in line with its strategy to exit the zinc business. In late July 2011, the company announced that it would permanently shut down its Zincor zinc refinery at Springs, South Africa, 50 km east of Johannesburg, by year-end 2011. Zincor was the only zinc refinery in South Africa.