Nyrstar to generate 50% of profits from mining by 2016

Finance

Publishing Date: 18 Jan 2012 12:35pm GMT
Author: Mining Journal

The world’s largest zinc smelter, Nyrstar NV, is to continue its expansion into mining over the coming year. The company plans to spend a further €2 billion (US$2.5 billion) on mine acquisitions, with a view to generating 50% of its profits from mining by 2016.

In an interview with Bloomberg, Nystar’s chief executive officer Roland Junck said that the company plans to buy mines producing mixed base and precious metals, aimed at generating annual EBITDA of €1.5 billion within the next four years.

Junck said “We need to develop our existing footprint to achieve half of that result, and the additional footprint we need to acquire to deliver the rest. There’s always the path of acquisition and the improvement of the new acquisition.”

Nyrstar embarked on a first round of mine acquisitions in 2009, and in June 2011 the company purchased zinc producer Breakwater Resources Inc for US$627 million.

Mr Junck said that the company was considering making joint acquisitions with Glencore International plc, which holds an 8% stake in Nyrstar.