Anglo American says sells zinc assets for 1.4 billion dollars

10th May 2010, Comments 0 comments

Global mining group Anglo American on Monday said it had agreed to sell its zinc assets to British rival Vedanta Resources for 1.338 billion dollars (1.0 billion euros).

Anglo American Zinc comprises the Skorpion mine in Namibia, the Lisheen mine in Ireland and a 74 percent interest in Black Mountain Mining in South Africa.

"Of the total consideration, 698 million dollars relates to the Skorpion mine, 308 million dollars relates to the Lisheen mine and 332 million dollars relates to... Black Mountain Mining," Anglo American said in a statement.

The sale comes after Anglo American's net profit more than halved to 2.4 billion dollars in 2009 as last year's economic downturn slashed the prices of metals.

The company, led by chief executive Cynthia Carroll, also axed a massive 23,400 jobs, including contractor positions, in 2009 -- a year when it also fought off a hostile takeover attempt by Swiss miner Xstrata.

Anglo American has a 45-percent stake in De Beers, the world's largest diamond company.

© 2010 AFP

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