Anglo American has agreed to sell its portfolio of zinc assets to Vedanta Resources for a total consideration of $1,338 million. Anglo American Zinc comprises the Skorpion mine in Namibia, the Lisheen mine in Ireland and a 74% interest in Black Mountain Mining in South Africa, which holds 100% of the Black Mountain mine and the Gamsberg project. The company produced 350,000 t of contained zinc in 2009 and has, in aggregate at its operating mines, ore reserves of 1.9 Mt and resources of 1.1 Mt (in addition to reserves). In addition, Gamsberg has mineral resources of 12.9 Mt .

Of the total consideration, $698 million relates to the Skorpion mine, $308 million relates to the Lisheen mine and $332 million relates to Anglo American’s 74% interest in Black Mountain Mining. The sale follows Anglo’s announcement, back in October, of its strategy to focus on its portfolio of worldclass, large scale, long life mining assets in those commodities where the company holds advantaged positions.

Cynthia Carroll, Chief Executive of Anglo American: “The successful sale of Anglo American Zinc for $1,338 million following our announcement in October last year is testament to the high quality of the business and its management team. This agreement represents an important milestone in our strategy to focus on our core commodity businesses and on the delivery of our exciting near term growth from our $17 billion of approved projects. I am grateful for the support received from Anglo American Zinc’s management and employees and I believe they will benefit under the ownership, and with the development plans, of Vedanta.”

Anil Agarwal, Chairman of Vedanta, said: “We are delighted to have reached this agreement with Anglo American to acquire their portfolio of zinc assets. These high quality assets complement Vedanta’s existing portfolio, creating the largest zinc and lead producer in the world. We intend to rapidly develop Gamsberg, one of the largest high quality zinc projects in the world, leveraging our worldclass large project development expertise. Vedanta has consistently demonstrated a track record of successfully integrating and investing in its acquisitions, and we look forward to working with the high quality management team and employees of Anglo American Zinc, Exxaro and the local communities towards growing the business. We are committed, as we are throughout all of our operations worldwide, to maintaining the highest health and safety standards, and to the sustainable development of these operations.”