Sterlite completes acquisition of Anglo American's zinc assets
16 Feb 2011
Sterlite Industries (India) Limited, part of the London-listed mining and metals major Vedanta Resources plc, today announced the completion of its acquisition of Lisheen Zinc Mine in Ireland, thereby completing acquisition of all the three Anglo Zinc assets.
Sterlite acquired Lisheen Zinc Mine from Taurus International SA, a member of the Anglo American plc group, for around $546 million, which includes approximately $275 million against cash balance available at Lisheen as of date.
On 10 May 2010 Vedanta had announced plans to acquire Anglo American's Zinc Assets for a total cash consideration of $1.34 billion, on a debt and cash free basis.
Anglo Zinc comprises the 100 per cent owned Skorpion mine in Namibia, the 100 per cent owned Lisheen mine in Ireland and the 74 per cent owned Black Mountain Mines, which includes the Black Mountain mine and Gamsberg project in South Africa.
The acquisitions of the Skorpion mine and Black Mountain mine were completed in December 2010 and early in February 2011, for cash considerations of approximately $707 million and $348 million respectively.
"Anglo Zinc is an excellent operational and strategic fit with our existing business and will create significant long term value for shareholders. This acquisition will consolidate our position as the world's largest integrated zinc - lead producer with significant reserves and resources of 478 million tonnes," said Anil Agarwal, chairman of Vedanta Resources plc.
