Nyrstar Seeking Partner for Zinc Offtake Deal

Mineweb reported that by the end of next month, Nyrstar NV (EBR:NYR), the largest zinc producer in the world, will team up with at least one partner to sell output valued at $650 million per year.

As quoted in the market news:

The 350,000 tonne zinc offtake, or marketing, agreement is up for grabs because commodity firm Glencore agreed to scrap the deal, which it had signed in 2008, in order to get European Union regulatory approval for its takeover of Xstrata.

The company has a short list of potential partners, whittled down from a list of around 12 who had expressed interest, said Bob Katsiouleris, Nyrstar’s senior vice president for marketing, sourcing and sales.

He would not say how many were on the list or name them.

However, metals industry sources with knowledge of the situation have said a short list of five includes commodity traders Trafigura and Louis Dreyfus. The new deal, involving zinc produced in Europe, would last five years.

Click here to read the full Mineweb report.