East Tennessee Zinc Co., which operated zinc mines in East Knox and Jefferson Counties and employed about 400 workers before being shut down late last year, is being sold to Belgian mining company Nyrstar NV for $126 million.
East Tennessee Zinc was sold by Swiss raw materials conglomerate Glencore Group, which reopened the Young mine in New Market, the Coy mine in Strawberry Plains, and the Immel mine in Mascot in 2006. Glencore disclosed the sales agreement last week.
Nyrstar already owns a smelting operation in Clarksville, Tenn., and another zinc mine complex in Gordonsville, Tenn. Nystar said the Clarksville smelter was originally built to treat the high-grade zinc concentrate from the Knox-Jefferson and Gordonsville mines.
“Consistent with our strategy, the acquisition provides an opportunity to capture a number of significant synergies in relation to cost reductions and operational benefits between our Clarksville smelter and the East Tennessee and Gordonsville zinc mine complexes, thereby supporting a long-term sustainable future for these operations,” Nyrstar CEO Roland Junck said in a statement.
Junck said Nyrstar, which acquired the Gordonsville mines in May, recently has restarted limited operations there and intends to restart the East Tennessee mines “as quickly as possible.”
Nyrstar said several steps remain before the deal closes, including completion of due diligence, but the transaction is expected to be completed during the fourth quarter.
Source: Knoxville News
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