Nyrstar enters into agreement to acquire 1.25 million tonnes of zinc in concentrate from Talvivaara
(Thomson Reuters ONE) - 25 January 2010Nyrstar today announced that it had agreed to acquire 1.25 million tonnes ofzinc in concentrate from Talvivaara Sotkamo Limited (a member of the TalvivaaraMining Company Plc group) for a purchase price of US$335 million (approximatelyEUR240 million).Talvivaara will deliver 100% of its zinc concentrate production to Nyrstar untilthe 1.25 million tonnes of zinc in concentrate has been delivered (equivalent toapproximately 2 million tonnes of zinc concentrate at a grade of 65%). Based onTalvivaara's planned production, the parties expect a ramp-up to approximately90,000 tonnes per annum of zinc in concentrate by 2012, with deliveries over aperiod of 10 to 15 years. The first delivery from Talvivaara is expected to bemade during February 2010.In addition to the US$335 million purchase price, Nyrstar will pay Talvivaara anextraction and processing fee of EUR350 per tonne of zinc in concentrate delivered(with escalators in relation to the price of elemental sulphur and propane), aswell as the following price participation: * until the later of the seventh anniversary of the agreement or delivery of 600,000 MT of zinc in concentrate, Nyrstar will pay to Talvivaara 10% of the zinc price exceeding US$2500 per tonne (up to US$3000 per tonne), and 30% of the zinc price exceeding US$3000 per tonne; and * thereafter, Nyrstar will pay to Talvivaara 30% of the excess of the zinc price above the EUR350 per tonne processing fee.Nyrstar has also agreed to supply to Talvivaara up to 150,000 tonnes ofsulphuric acid per annum for use in Talvivaara's leaching process during theperiod of supply of the zinc in concentrate.Commenting on the agreement, Roland Junck, chief executive officer of Nyrstar,stated:"This agreement is an innovative approach to the continued execution of ourstrategy. Whilst we will not own or operate the Talvivaara Sotkamo mine, wewill participate in the economic benefits of owning a first quartile cash costzinc mine with a defined life of 1.25 million tonnes of zinc in concentrate.The Talvivaara zinc concentrates are suitable for treatment at all our smelters,but being low in iron are particularly suitable for treatment at our Budel(Netherlands) smelter.We continue to actively explore additional opportunities to deliver on ourstrategy."The agreement is subject to a number of customary conditions. Subject tosatisfaction of these conditions, completion and payment of the purchase priceis expected to occur on or about 29 January 2010. - end -About NyrstarThe partner of choice in essential resources for the development of a changingworld. Nyrstar is a leading global multi-metals business, producing significantquantities of zinc and lead as well as other products (including silver, goldand copper). Nyrstar is listed on NYSE Euronext Brussels under the symbol NYR.For further information visit the Nyrstar website,www.nyrstar.com
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Datum: 25.01.2010 - 01:04 Uhr
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