UK-based miner Anglo American plc (Anglo American) has announced that it has agreed to sell its portfolio of zinc assets (Anglo American Zinc) to emerging UK-based Vedanta Resources plc (Vedanta) for a total consideration of $1.34 billion on an attributable, debt and cash free basis.
Anglo American Zinc comprises the Skorpion mine in Namibia, the Lisheen mine in Ireland and a 74 percent interest in Black Mountain Mining in South Africa, which holds 100 percent of the Black Mountain mine and the Gamsberg project. 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 percent interest in Black Mountain Mining.
The sale of Anglo American Zinc follows Anglo American's October 2009 announcement of its strategy to focus on its portfolio of world class, large scale, long life mining assets in those commodities where Anglo American holds advantaged positions.
The transaction is subject to customary regulatory approvals as well as competition clearance in the relevant jurisdictions. Completion of the transaction is expected to be in stages, with separate completion dates for Skorpion, Lisheen and Black Mountain Mining.