Companies

Sterlite completes Rs 1,170-cr S. Africa coal mine buy

Our Bureau Mumbai | Updated on February 05, 2011

A view of the Sterlite plant in Tuticorin.(file Photo) - N. Rajesh

The company will replace a shareholder loan for Rs 396 crore which takes the total deal value to Rs 1,566 crore.





Sterlite Industries, part of Vedanta Resources Plc, has completed the acquisition of a 74 per cent stake in Black Mountain Mines in South Africa from Anglo Operations (part of the Anglo American plc) for $260 million (Rs 1,170 crore).

The company will also replace a shareholder loan for $88 million (Rs 396 crore) which takes the total value of the deal to $348 million (Rs 1,566 crore), it said.

Last May, Sterlite had planned to execute the deal through its arm, Hindustan Zinc, but had to change tack with the approval of the Union Government, which has a substantial stake, late in coming.

Vedanta announced the acquisition of Anglo American's zinc assets for $1,338 million on an attributable, debt and cash-free basis. Anglo Zinc comprises Skorpion mine in Namibia, 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 acquisition of the Skorpion zinc mine was completed last December for a cash consideration of $707 million (Rs 3,180 crore). The process of completing the Lisheen mine transaction is progressing well and expected to close as per schedule, the company said.

“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,” according to a press release.

Mr Anil Agarwal, Chairman, Vedanta Group, added, “We are pleased to have completed the second leg of the acquisition of the Anglo Zinc assets. Black Mountain Mine and Gamsberg project are high quality zinc assets and will remain an important economic driver in the region.”

Published on February 05, 2011

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