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RNS Number : 2810K
Xstrata PLC
13 July 2011
NEWS RELEASE
XSTRATA ZINC TO ACQUIRE JV PARTNER'S INTEREST IN PALLAS GREEN
PROPERTY, IRELAND
Toronto and Madrid, 13 July 2011
Xstrata Zinc Canada has agreed to purchase the remaining 23.6%
interest in the Pallas Green property in Ireland belonging to its
current joint venture partner in the project, Minco plc, for $19.4
million.
Under the agreement, which is subject to Minco shareholder
approval, Xstrata Zinc will become the sole owner of the project at
Cahernconlish, Limerick County in the Republic of Ireland.
Exploration efforts have identified significant zinc
mineralisation at the Pallas Green property, which is at
pre-feasibility study stage. As of December 31, 2010 the JORC
compliant inferred resource estimate is 25.9 million tonnes with
7.51% zinc and 1.38% lead at a 4% cut off (8.89% Zn eq).
Xstrata Zinc Chief Executive Officer Santiago Zaldumbide said:
"This acquisition is consistent with Xstrata Zinc's stated growth
strategy and demonstrates our commitment to the Pallas Green
project and our belief in its longer-term potential as a zinc
operation. If developed, Pallas Green would be well positioned to
supply our European smelters based in Spain and Germany. We look
forward to working with the Irish authorities and stakeholders to
develop these properties."
Ends
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Xstrata contacts
Xstrata Zinc Canada Xstrata
Louis-Philippe Gariepy Alison Flynn
Telephone + 1 (514) 645 2311 x2162 Telephone +44 20 7968 2838
Email lgariepy@xstratacopper.ca Email aflynn@xstrata.com
ABOUT XSTRATA ZINC
Headquartered in Madrid, Spain, Xstrata Zinc is one of the
world's largest producers of zinc and one of the commodity business
units within the major global diversified mining group Xstrata plc.
Xstrata's zinc and lead operations and exploration projects are
located in Australia, Canada, Germany, Peru, Spain and the United
Kingdom.
Xstrata Zinc's operations in Spain comprise the San Juan de
Nieva zinc smelter and the Arnao zinc semis plant in Asturias, and
the Hinojedo roasting plant in Cantabria.
In Australia, operations comprise: the Mount Isa, George Fisher
underground, Handlebar Hill open cut and Black Star open cut
zinc-lead mines, zinc-lead concentrator, lead smelter and Bowen
Coke Works in north Queensland; and the McArthur River open pit
zinc-lead mine, processing and loading facility in the Northern
Territory.
In Canada, operations and exploration projects include the
Brunswick zinc-lead mine, and the Brunswick Lead smelter and
recycling facilities in New Brunswick; the Perseverance zinc mine
and the Bracemac McLeod mine development in Quebec and the General
Smelting facilities and 25% of the CEZ zinc smelter near
Montreal.
Xstrata Zinc also operates the Nordenham zinc smelter in
northern Germany; the Northfleet lead refinery in the United
Kingdom; and owns 33.75% of the Antamina mine in Peru.
Around half of all zinc currently consumed is used for
galvanizing steel, which is an environmentally friendly method of
protecting steel against corrosion. Zinc also finds application in
the manufacture of die-cast alloys, brass and the production of
zinc oxides and chemicals.
This information is provided by RNS
The company news service from the London Stock Exchange
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