Information  X 
Enter a valid email address

Nyrstar (0JNH)

  Print   

Monday 14 September, 2009

Nyrstar

Nyrstar agrees to acquire East-Tennessee Zinc m...





Balen, Belgium (14 September 2009) - Nyrstar NV today announced  that
it has  agreed to  acquire the  East-Tennessee Zinc  mine complex  in
Tennessee, US from the Glencore Group for US$126 million.

The Glencore Group acquired  the mine complex in  May 2006 for  US$65
million and following that a significant amount has been invested  by
the Glencore Group on  plant upgrades and  other improvements to  the
mine complex.   The mine  complex has  been on  care and  maintenance
since February 2009.

The complex comprises three separate  mines (Young, Immel and  Coy).
All three mines are located  within (approximately) 20 miles of  each
other and (approximately) 250 miles of Nyrstar's Clarksville  smelter
and Gordonsville (Mid-Tennessee) zinc mine complex.

Similar to the Gordonsville zinc mine complex (acquired by Nyrstar in
May  2009),  the  East-Tennessee  Zinc  mine  complex  has  a   close
association with Nyrstar's Clarksville  smelter which was  originally
constructed to treat the high-grade concentrate from these mines.  At
full production these mines  will be capable  of providing more  than
100% of  the  concentrate  requirements for  this  smelter  with  the
East-Tennessee mine  complex  producing (approximately)  110,000  dry
metric tonnes (dmt) at a grade of (approximately) 62%.

Commenting on the acquisition, Roland Junck, chief executive  officer
of Nyrstar, stated:

"Consistent  with   our  strategy,   the  acquisition   provides   an
opportunity to capture a number of significant synergies in  relation
to cost reductions and  operational benefits between our  Clarksville
smelter and the East-Tennessee and Gordonsville zinc mine  complexes,
thereby  supporting  a  long   term  sustainable  future  for   these
operations.

We have  recently commenced  limited operations  at the  Gordonsville
zinc mine complex and we intend to pursue a measured ramp up of those
operations over the next 6  months.  The East-Tennessee mine  complex
has a strong and  experienced workforce and  we intend to  recommence
operations at the mine complex as quickly as possible.

Our strong financial  position has  enabled us to  take advantage  of
this opportunity.   We  believe  that  the  fundamental  outlook  for
commodities  remains  positive  and,  accordingly,  we  continue   to
actively explore other opportunities consistent with our strategy."
Commenting on the acquisition, a spokesperson for Glencore, stated:

"We  share  Nyrstar's  belief   that  the  fundamental  outlook   for
commodities (including zinc)  is positive.   The East-Tennessee  mine
complex is a quality asset, well  placed to take advantage of  market
conditions as they continue to improve.  However, as the owner of the
Clarksville  smelter  and  nearby  Gordonsville  zinc  mine  complex,
Nyrstar is the natural owner  of this asset and  is in a position  to
create additional value that is not available on a standalone basis."

The acquisition remains subject to  a number of conditions  including
finalization of due  diligence.  Subject to  this, completion of  the
transaction is currently expected to occur during Q4 2009.

The acquisition  will be  funded from  existing cash  reserves.   The
costs associated with recommencing  operations at the  East-Tennessee
Zinc mine complex are not expected to be material.

Resources and Reserves

The East  Tennessee  Zinc  mine  complex  has  had  a  history  of  a
one-for-one reserve replacement.  The following is  a summary of  the
most recent  reserve and  resource statement  for the  East-Tennessee
Zinc mine  complex  prepared  on  behalf of  the  Glencore  Group  in
May/June 2009 pursuant to the JORC Code:


+----------------------------------------------------+
|        Total (Proven and Probable) Reserves        |
|----------------------------------------------------|
| Ore reserves |  Tonnes   | Zn (%) | Contained zinc |
|              |           |        |    (tonnes)    |
|--------------+-----------+--------+----------------|
|    Young     | 5,822,400 |  2.6%  |    150,919     |
|--------------+-----------+--------+----------------|
|    Immel     | 2,568,900 |  5.4%  |    139,547     |
|--------------+-----------+--------+----------------|
|     Coy      | 1,385,040 |  3.5%  |     48,715     |
|--------------+-----------+--------+----------------|
|  Total ore   | 9,776,340 |  3.5%  |    339,181     |
|   reserves   |           |        |                |
+----------------------------------------------------+



+------------------------------------------------------------+
| Total (Measured, Indicated and Inferred) Mineral Resources |
|------------------------------------------------------------|
|     Mineral     |    Tonnes    | Zn (%)  | Contained zinc  |
|    resources    |              |         |    (tonnes)     |
|-----------------+--------------+---------+-----------------|
|      Young      |  11,724,300  |  3.1%   |     364,130     |
|-----------------+--------------+---------+-----------------|
|      Immel      |  3,696,100   |  5.4%   |     201,077     |
|-----------------+--------------+---------+-----------------|
|       Coy       |  1,531,340   |  4.0%   |     61,836      |
|-----------------+--------------+---------+-----------------|
|  Total mineral  |  16,951,740  |  3.7%   |     627,043     |
|    resource     |              |         |                 |
+------------------------------------------------------------+


Note: The JORC Code is an internationally recognized Australian  code
for the reporting of exploration  results, mineral resources and  ore
reserves.

                               - end -

About Nyrstar
The partner of choice in essential resources for the development of a
changing world.  Nyrstar is a leading global multi-metals'  business,
producing significant quantities of  zinc and lead  as well as  other
products (including silver, gold and  copper).  Nyrstar is listed  on
NYSE Euronext Brussels under the symbol NYR. For further  information
visit the Nyrstar website, www.nyrstar.com.


Contacts

Michael Morley
Director Legal and
External Affairs
T: +44 20 7408 8120
[email protected]

Investors

Chris James
Group Manager,
Investor Relations
T: +44 20 7408 8161
M: +44 7912 269 497
[email protected]

Media

Geert Lambrechts
Communications Advisor
T: +32 14 449 646
M: +32 473 637 892
[email protected]


The full press release can be downloaded from the following link:


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.




                                                                                                                                                                                                                                                    

a d v e r t i s e m e n t