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  • Sterlite Industries (India) Limited Announces Completion of the Acquisition of Black Mountain Mines in South Africa

    Published on February 8, 2011

    Mumbai : Sterlite Industries (India) Limited (“Sterlite”) today announces the completion of the acquisition of a 74% interest in Black Mountain Mining (Pty) Ltd (“Black Mountain”) in South Africa from Anglo Operations Limited, a member of the Anglo American plc Group, for a share value of $260 million. Sterlite is also replacing the Shareholder loan of $88 million, thus taking the total consideration for Black Mountain to

    $348 million. The acquisition includes the Black Mountain zinc mine and the Gamsberg zinc project.

    On 10 May 2010, Vedanta announced the proposed acquisition of Anglo American’s zinc assets (“Anglo Zinc”) for a total cash consideration of $1,338 million, on an attributable, debt- and cash- free basis. Anglo Zinc comprises the 100 %owned Skorpion mine in Namibia, the 100% owned Lisheen mine in Ireland and the 74% owned Black Mountain Mines, which includes the Black Mountain mine and the Gamsberg project in South Africa. The acquisition of the Skorpion zinc mine was completed in December 2010, for a cash consideration of approximately $707 million. The process of completing the Lisheen mine transaction is progressing well and is expected to close as per schedule.

    Anglo Zinc is an excellent operational and strategic fit with our existing business and will create significant long term value for shareholders. This acquisition will consolidate our position as the world’s largest integrated zinc – lead producer with significant reserves and resources of 478 million tonnes.

    Commenting on the transaction, Anil Agarwal, Chairman of Vedanta said: “We are pleased to have completed the second leg of the acquisition of the Anglo Zinc assets. Black Mountain Mine and Gamsberg project are high quality zinc assets and will remain an important economic driver in the region”.