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Exxaro to exit Zincor refinery

Oct 10 2011 15:58 Reuters

Company Data

Exxaro Resources Ltd [JSE : EXX]

Last traded R185.80
Change R0.55
% Change 0.30%
Cumulative volume 518,836
Market cap R65.86bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - South African miner Exxaro Resources [JSE:EXX] said on Monday it will cease operations at its unprofitable Zincor refinery on December 31 after it failed to sell the plant.

Exxaro has said it plans to exit the zinc business and focus on growing more lucrative parts of its operations, including coal and iron ore mining.

"The ramp-down of the operation to a mothballed state has started," it said in a statement.

The company said up to 796 employees will be affected by the shutdown. It has plans in place to meet its supply agreements.

"We are taking all feasible steps to provide the most suitable options to affected employees, customers and suppliers," chief executive Sipho Nkosi said.

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.

 
 
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