Dec 6 2010
Sterlite Industries Limited today announces the completion of the acquisition of the Skorpion Zinc Mine in Namibia from Anglo American plc for a cash consideration of approximately $707 million.
On 10 May 2010, Vedanta announced the acquisition of Anglo American's Zinc Assets ("Anglo Zinc") - for a total cash consideration of $1,338 million, on an attributable, debt and cash free basis. Anglo Zinc comprises the 100 per cent owned Skorpion mine in Namibia, the 100 per cent owned Lisheen mine in Ireland and the 74 per cent owned Black Mountain Mines, which includes the Black Mountain mine and Gamsberg project in South Africa.
Skorpion has been acquired by a subsidiary of Sterlite Infra Limited, itself a wholly owned subsidiary of Sterlite. It was intended that the acquisition of Anglo Zinc would be undertaken by Hindustan Zinc Limited ("HZL"), a subsidiary of Sterlite, subject to approval from the Indian Government as shareholder, which was not received within the contractual completion timeline for Skorpion. The acquisitions of the Lisheen mine and Black Mountain Mines are expected to be completed on schedule
Anglo Zinc is an excellent operational and strategic fit with our existing business and will create significant long term value for shareholders. This acquisition will consolidate our position as the world's largest integrated zinc - lead producer with significant reserves and resources of 478 million tonnes.
Commenting on the transaction, Anil Agarwal, Chairman, said: "We are delighted to have completed the first phase of the acquisition of Anglo Zinc assets. Skorpion Zinc Mine is a high quality zinc asset and will complement our existing portfolio. We look forward to working with Skorpion's team and remain committed to maintaining the highest standards of sustainability and exploring growth opportunities."
Source: Sterlite Industries Limited