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Johannesburg - Diversified miner Exxaro Resources [JSE:EXX] said on Friday it would cease operations at its unprofitable Zincor refinery after measures to try sell the asset had failed.
Exxaro has said it plans to exit the zinc business and focus on growing other, more lucrative, parts of its operations, especially coal and iron ore.
"Zincor as a zinc-making operation has proved to be un-saleable to potential investors ... and turn-around and improvement interventions have proved fruitless," said Sipho Nkosi, Exxaro's chief executive.
The company said the closure of the refinery may lead to lay-offs, should it prove impossible to relocate employees to other Exxaro operations.
Exxaro's zinc portfolio also includes a 50.04% interest in the Rosh Pinah zinc and lead mine in Namibia and a 22% interest in the Chifeng zinc smelter in China.
The miner said talks on the sale of its shareholding in Rosh Pinah and Chifeng were ongoing.
Exxaro has said it plans to exit the zinc business and focus on growing other, more lucrative, parts of its operations, especially coal and iron ore.
"Zincor as a zinc-making operation has proved to be un-saleable to potential investors ... and turn-around and improvement interventions have proved fruitless," said Sipho Nkosi, Exxaro's chief executive.
The company said the closure of the refinery may lead to lay-offs, should it prove impossible to relocate employees to other Exxaro operations.
Exxaro's zinc portfolio also includes a 50.04% interest in the Rosh Pinah zinc and lead mine in Namibia and a 22% interest in the Chifeng zinc smelter in China.
The miner said talks on the sale of its shareholding in Rosh Pinah and Chifeng were ongoing.
