Nyrstar Buying Glencore’s East Tennessee Mines
The East Tennessee mines have been on care and maintenance since February 2009. The Glencore Group acquired the mines in May 2006 for $65 million and subsequently invested in plant upgrades and other improvements. At full production, Nyrstar expects the East Tennessee mines to produce about 110,000 mt/y of zinc in concentrates.
Commenting on the acquisition, Nyrstar CEO Roland Junck said, “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 [Tennessee] operations, 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 six 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.”
Subject to a number of conditions, including due diligence, completion of the transaction was expected to occur during the fourth quarter of 2009.