Mining giant Anglo American plans to sell its stake in Lisheen Mine in Tipperary as part of a bigger plan to sell all its global zinc operations to raise €4bn, London-based 'Metal Bulletin' magazine has reported.
Anglo American is expanding its divestment programme by putting the zinc business on the block as part of a wider restructuring. Anglo American is being pressured by investors after an abortive merger bid from rival Xstrata.
"The zinc business may be the first to go because zinc prices have recovered strongly and they're high quality assets. That's the expectation in the market," Reuters reported, quoting an industry source as saying.
The price of zinc has nearly doubled this year, touching a 17-month high on Monday, and is on course for a 17.7pc rise this month as it benefits from producer cutbacks and Chinese buying.
Zinc is one of Ireland's few valuable minerals and production is centred on three zinc-lead mines -- Lisheen, Galmoy in Kilkenny, and Tara in Meath which is the largest lead-zinc field in Europe. The owners of the Galmoy mine will close in 2011, while Tara mines has been threatened with closure several times.
Anglo's zinc operations consist of Lisheen, Skorpion in Namibia and the 74pc-owned Black Mountain mine and Gamsberg project in South Africa.
Source: Irish Independent
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