Vedanta buys Anglo American Zinc for $1.3 billion

Lonon-based miner Vedanta today said that it is acquiring Anglo American Zinc for $1.3 billion with economic ownership transferred with effect from 1 January 2010.

Vedanta said in a statement the acquisition will be made by its Indian zinc production arm Hindustan Zinc Limited from is internal cash resources, which on 31 March 2010, amounted to $7.2 billion.

"Anglo Zinc is an excellent operational and strategic fit with Vedanta's existing zinc business and will create significant long term value for Vedanta's shareholders," the company said in a statement.

The acquisition, which includes the Skorpion mine in Namibia, Lisheen in Ireland and Black Mountain in South Africa, would make Vedanta the world's largest zinc producer, with 11 per cent of the global market.

"These high quality assets complement Vedanta's existing portfolio, creating the largest zinc and lead producer in the world," said Vedanta chairman Anil Agarwal in the statement.

This acquisition substantially increases Vedanta's zinc and lead production capacity, taking its annualised annual production capacity from 1,064 kt annually to 1,462 kt (an increase of 37 per cent.), representing 11 per cent. of the global zinc market.