Go Back Email this Link to a friend

EXX - Exxaro - Exxaro disposes of its interest in Rosh Pinah

Release Date: 15/12/2011 08:02:21      Code(s): EXX
EXX - Exxaro - Exxaro disposes of its interest in Rosh Pinah                    
Exxaro Resources Limited                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 2000/011076/06)                                            
Issuer Code: EXX                                                                
ISIN: ZAE000084992                                                              
EXXARO DISPOSES OF ITS INTEREST IN ROSH PINAH                                   
1. Introduction                                                                 
Shareholders are advised that Exxaro, through its wholly-owned subsidiary Exxaro
Base Metals and Industrial Minerals Holdings (Proprietary) Limited, has entered 
into an agreement (the "transaction agreement") relating to 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 AG ("Glencore") (the "transaction") for an undisclosed cash       
Glencore has also concluded an agreement with certain other shareholders of Rosh
Pinah, namely PE Minerals (Namibia) (Proprietary) Limited ("PE Minerals") and   
Jaguar Investments Four (Proprietary) Limited ("Jaguar") to acquire a further   
30,04% shareholding in Rosh Pinah such that Glencore will hold an 80,08%        
shareholding in Rosh Pinah.  PE Minerals, Jaguar and the Rosh Pinah Employee    
Empowerment Participation Scheme Trust will hold the remaining 19,92%           
The effective date of the transaction will be the last day of the month during  
which the suspensive conditions, set out in paragraph 3 below, have been met.   
2. The Rationale                                                                
Exxaro completed a Namibian empowerment transaction during 2008, where the      
Namibian shareholding in Rosh Pinah was increased to 49,96%.                    
During 2009, Exxaro announced its intention to divest its zinc assets. This     
decision was based on a strategic assessment of the business portfolio which    
Exxaro undertook in 2009 after which it was decided to focus on its larger core 
assets in the coal and mineral sands industry.                                  
3. Suspensive Conditions                                                        
The transaction agreement contains terms and conditions that are usual in a     
transaction of this nature, including, inter alia, regulatory approvals to be   
obtained in Namibia and South Africa.                                           
Sipho Nkosi, the chief executive officer of Exxaro, commented, "The conclusion  
of the transaction is part of Exxaro`s strategic plan to divest from its zinc   
assets. The decision to dispose of our shareholding in Rosh Pinah and to cease  
production at Zincor, was made in the context of the difficult conditions of the
zinc market, including its cyclical nature, low margins as well as the          
significant impact of the exchange rate and higher electricity prices."         
The Rosh Pinah zinc and lead mine is situated in south-western Namibia, 800km   
south of Windhoek and operates an underground zinc/lead mine. The mineral       
deposit occurs in complex structural settings, favouring silling and benching   
mining methods. Rosh Pinah produced 101 000 tonnes of zinc concentrate and 19   
000 tonnes of lead concentrate during 2010.                                     
For enquiries:                                                                  
Wim de Klerk                                                                    
Exxaro Resources Limited                                                        
Finance Director                                                                
Tel: + 27 12 307 4848                                                           
Mobile: +27 82 652 5145                                                         
Email: wim.deklerk@exxaro.com                                                   
15 December 2011                                                                
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: 15/12/2011 08:02:21 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2018 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.