Balen, Belgium (1 May 2009) - Nyrstar NV today announced that it has
acquired the Mid-Tennessee Zinc mine complex in Tennessee, US for
(approximately) €10 million in cash.
The mine complex was acquired from Mid-Tennessee Zinc Corporation
(MTZ) (in Chapter 11 Bankruptcy), a wholly owned subsidiary of
Strategic Resource Acquisition Corporation (SRA), following approval
from the US Bankruptcy Court today. MTZ acquired the mine complex in
2006 and it has been on care and maintenance since October 2008.
The mine complex has a history of close association with Nyrstar's
Clarksville smelter which was originally constructed to treat
concentrate from the mine complex. Once operations are recommenced,
the mine complex will continue to be an important source of
concentrate for this smelter providing (approximately) 50% of its
Commenting on the acquisition, Roland Junck, chief executive officer
of Nyrstar, stated:
"Once operational, the acquisition of the mine complex provides us
with an opportunity to capture a number of important synergies that
should support a long term sustainable future for Clarksville, in
addition to capturing the value contained in the germanium and
gallium rich concentrate."
Nyrstar intends to continue the care and maintenance program for the
near future but will review opportunities to recommence operations as
soon as commercially feasible. The costs for this program are not
The acquisition was funded from existing cash reserves.
The Mid-Tennessee Zinc mine complex comprises facilities at three
sites; Elmwood (established in the 1970s), Gordonsville (established
in the 1980s) and Cumberland (established in the 1990s). All three
mining facilities are located within (approximately) ten (10) miles
of each other within an (approximately) 20 square mile area of Smith
County, Tennessee and are located (approximately) 50 miles east of
Nashville. When operational, ore mined at the three facilities is
processed into zinc concentrate at the Gordonsville site. The
Gordonsville zinc mine complex is located (approximately) 100 miles
from Nyrstar Clarksville.
The most recent resource statement for the mine complex (October
2008) indicates a total ore reserve (indicated and inferred) of
(approximately) 30 million tons containing (approximately) 1 million
tons of zinc at an average ore grade of (approximately) 3% zinc.
Accordingly, the ore reserve indicates a mine life of (approximately)
10 to 15 years producing (approximately) 100,000 dmt per annum of
zinc concentrates. There was a one-for-one reserve replacement
record over 28 years of operations from 1975 to 2003.
Previously owners of the mine complex have included Union Miniere (a
predecessor of Umicore) and Pasminco (a predecessor of Zinifex (now
- end -
Nyrstar is a supplier to the global commodity markets and is driven
by value creation. Nyrstar currently produces significant quantities
of zinc, lead and other valuable metals. Nyrstar is listed on NYSE
Euronext Brussels under the symbol NYR. For further information visit
the Nyrstar website, www.nyrstar.com
Director, Legal and External Affairs
T: +44 20 7408 8120
Group Manager, Investor Relations
T: +44 20 7408 8161
M: +44 7912 269 497
T: +32 14 449 646
M: +32 473 637 892
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.