:: Xstrata to Acquire Zinc Smelter

Xstrata subsidiary Asturiana de Zinc SA has agreed to acquire the Nordenham zinc smelter from Metaleurop for US$100 million. The Nordenham plant, which is located near Bremerhaven in northern Germany, has an annual capacity of 133 kt of zinc metal, and is one of the world's most profitable and cost-efficient zinc producers. Following the acquisition, Xstrata's total zinc capacity will increase from its current 470 kt/y to over 600 kt/y, accounting for 20.5% of European zinc metal production and 6.4% of global output. Mr Santiago Zaldumbide, CE of Xstrata Zinc, said that the key attractions of the acquisition included potential operational and marketing synergies with the company's San Juan de Nieva smelter in Spain, and a possible expansion that could double Nordenham's capacity to some 250 kt/y 'at an appropriate time in the future'.