Nyrstar will enter into a relationship with Trafigura, establishing new long-term purchasing and sales tie-ups with the trading house in return for the trader taking up to 49.9% of the producer’s shares, it said on Monday October 9.
While attempting to improve its balance sheet and considering a 400,000-tonne cut
in zinc concentrate production, Nyrstar is also mulling a complete exit from the mining sector.
Nyrstar’s own zinc supply accounts for only about 30% of its concentrate needs, and the argument for capital allocation to invest in the mines is not strong enough, ceo Bill Scotting said.
“As much as I like the optionality and option value in some of these mines, I don’t have the capital to [invest], which is why I say that I should sell all or part of...