| Mon 11 Jun 2012, 8:05 | | EXX - Exxaro Resources Limited - Exxaro completes disposal of its interest in |
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EXX
EXX
EXX - Exxaro Resources Limited - Exxaro completes disposal of its interest in
Rosh Pinah
Exxaro Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number 2000/011076/06)
JSE Code: EXX
ISIN: ZAE000084992
("Exxaro")
EXXARO COMPLETES DISPOSAL OF ITS INTEREST IN ROSH PINAH
Shareholders are advised that Exxaro Resources Limited ("Exxaro"), through its
wholly-owned subsidiary Exxaro Base Metals and Industrial Minerals Holdings
(Proprietary) Limited, has completed the disposal of its entire 50,04%
shareholding in, and claims against, Rosh Pinah Zinc Corporation (Proprietary)
Limited ("Rosh Pinah") to wholly-owned subsidiaries of Glencore International
plc ("Glencore") (the "transaction".)
The selling price is R931 million which is subject to final adjustment for net
debt and working capital changes. The effective date of the transaction is 1
June 2012.
Sipho Nkosi, Exxaro`s chief executive officer, commented, "The divestment of
Exxaro`s interest in Rosh Pinah forms part of our strategic plan to divest from
our zinc assets, a decision made in the context of the difficult conditions of
the zinc market, including its cyclical nature, low margins, the significant
impact of the exchange rate and higher electricity costs.
"The completion of the transaction to a large extent concludes our divestment
plan," added Nkosi.
Production of zinc at the group`s Zincor operation ceased in December 2011.
Future applications for the Gauteng operation are being investigated.
The Rosh Pinah mine is situated in south-western Namibia, 800km south of
Windhoek. The underground operation produced 89 000 tonnes of zinc concentrate
and 16 000 tonnes of lead concentrate during 2011.
Exxaro continues to hold 26% of Black Mountain, which owns the Black Mountain
zinc and lead mine and the Gamsberg zinc project in the Northern Cape, as well
as an effective 22% interest in the Chifeng zinc smelter in China. The group
continues to seek appropriate buyers for these assets.
For enquiries:
Wim de Klerk
Finance Director
Tel: + 27 12 307 4848
Mobile: +27 82 652 5145
Email: wim.deklerk@exxaro.com
11 June 2012
Pretoria
Corporate Advisor and Transaction Sponsor to Exxaro
Merrill Lynch South Africa (Proprietary) Limited
Sponsor to Exxaro
Deutsche Securities (SA) (Proprietary) Limited
Legal Advisors to Exxaro
CLS Consulting Services (Proprietary) Limited
Legal Advisors to Glencore
Werksmans Attorneys
Date: 11/06/2012 08:05:01 Produced by the JSE SENS Department.
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