South African miner Exxaro is planning to sell its 24.4pc stake in Vedanta Zinc’s Black Mountain Mining (BMM) project.
According to media reports, the coal miner said on Friday that the sale was part of its strategy to exit from non-core business projects. The company added it was in advanced talks with potential buyers despite nothing being certain at the moment.
The BMM project is located in Northern Cape province, South Africa, of which Vedanta Zinc holds 69.6pc ownership of the mine. The balance 24.4pc and 6pc ownership are respectively held by Exxaro and Vedanta Zinc’s employees through an employee share plan.
The project produces around 1.7mn mt of ore per year consisting of zinc, lead, copper, and silver and can process 90,000mt of concentrates per year. The company, which is part of India’s Vedanta Group reported a 36pc decline in zinc production in Q2 2020 ended June 30, 2020, to 38,000mt.