Nyrstar to exit mining

Port Pirie redevelopment Image credit: Nyrstar website (http://www.nyrstar.com/investors/en/Pages/Port-Pirie-Redevelopment.aspx)

Mining and metals giant Nyrstar has announced that it intends to sell all of its mining business assets.

Port Pirie redevelopment Image credit: Nyrstar website (http://www.nyrstar.com/investors/en/Pages/Port-Pirie-Redevelopment.aspx)
Port Pirie redevelopment
Image credit: Nyrstar website (http://www.nyrstar.com/investors/en/Pages/Port-Pirie-Redevelopment.aspx)

The Belgian company issued a press release last Thursday stating that the sale process has already commenced and is being led by BMO Capital Markets Limited (“BMO Capital Markets”), Lazard & Co., Limited and Lazard BVBA/SPRL (collectively “Lazard”).

Nyrstar also said that it has received a number of “unsolicited expressions of interest for its mining assets from various potential buyers and will seek to engage with all prospective buyers for the mining assets, individually and as a portfolio, to ensure a fair and transparent sales process.”

“The sale process is expected to require a period of several months and may or may not result in a sale of all or the majority of Nyrstar’s mining assets. Nyrstar will issue an update in the event a sale is agreed or disclosure is otherwise required,” the company said.

Nyrstar operates the large-scale zinc Hobart smelter in Tasmania which is one of the world’s largest and most efficient zinc producers, with a capacity of 280,000 tonnes of market metal.

The company also operates the Port Pirie lead smelter in South Australia. Port Pirie is one of the world’s largest primary lead smelting facilities and the third largest silver producer.

Last July, Nyrstar announced that it will invest around A$52 million into four growth projects at its zinc smelter in Hobart after signing a funding and support package with the State Government of Tasmania.

Nyrstar also initiated a $563 million redevelopment of its smelter operations at Port Pirie in SA, underwritten by a $290 million agreement with the State Government.