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
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.