Anglo American has completed the sale of its Namakwa Sands mineral sands operation to Exxaro Resources for a consideration of about $245 million. Anglo American also completed the sale of its Black Mountain zinc, lead and copper operation and its Gamsberg zinc project to Black Mountain Mining, a wholly-owned subsidiary of Anglo American, in which Exxaro is unconditionally obliged to acquire a 26% interest for approximately $22 million.
Anglo American granted options over these interests to Exxaro as part of the unbundling of Kumba Resources Limited in November 2006 and those options were subsequently exercised.
Namakwa Sands’ major assets include a mineral sands mine at Brand-se-Baai, a mineral separation plant at Koekenaap and a smelter at Saldanha Bay, all situated on the west coast of the Western Cape. The business produces 125,000 t of zircon, 185,000 t of titania slag and 100,000 t of pig iron per year.
“These acquisitions position Exxaro strategically as one of the world’s top three suppliers of high-grade titanium dioxide feedstock and zircon,” said Sipho Nkosi, Exxaro’s chief executive officer. “Namakwa Sands is a worldclass mineral sands operation with a highly skilled workforce which we value greatly. The operation will fit well within our mineral sands business strategy.”
Exxaro also operates mineral sands mining and smelter operations in KwaZulu-Natal and has a 50% ownership in the Tiwest Joint Venture, a fully integrated mineral sands and pigment producer in Western Australia.
The Black Mountain operation is located near the town of Aggeneys in the Northern Cape where it mines lead, zinc, copper and silver. Some 45,000 t/y of zinc concentrate is supplied to Exxaro’s zinc metal refinery in Springs, Gauteng, on a long-term basis. The Gamsberg zinc project is potentially a large scale, low- to medium-grade, open-pit mine located adjacent to Black Mountain, with an estimated production capacity of 300,000 t/y of zinc.
“Our interest in Black Mountain and Gamsberg will strengthen our leading position in the South African zinc market,” said Nkosi. Exxaro has a long-standing presence in the Southern African zinc industry, owning the only zinc metal refinery in South Africa with a controlling interest in the Rosh Pinah zinc mine in Namibia.
