Anglo American in talks to sell zinc business worth $1 billion

Anglo American, the diversified London-based miner, is in advanced talks to sell its zinc business, valued at more than $1 billion, as part of a forced restructuring after a failed acquisition attempt late last year by rival Swiss miner Xstrata. (See: Anglo American rejects Xstrata's $68-billion deal )

According to media reports, Anglo American is closer to selling its entire zinc businesses to one buyer and a few rival mining companies are in the process of bidding for it.

The zinc assets being offloaded by Anglo American include its Skorpion mine in Namibia, Lisheen mine in Ireland and the Black Mountain mine and Gamsberg Project in South Africa, in which Exxaro Resources holds a 26 per cent stake.

Anglo's zinc operations output was 3,40,500 tonnes last year.

Some of the world's biggest zinc miners, like mining company Xstrata, world's largest commodities supplier and largest shareholder of Xstrata Glencore, owner of Europe's largest zinc mine Boliden of Sweden, and even China Minmetals are likely to bid.

Among the interested bidders is also London-listed Vedanta Resources' Indian subsidiary Hindustan Zinc Ltd, which holds a 79.7 per cent market share in India.