South African miner Sibanye-Stillwater has extended its reach into Australia with the acquisition of a 19.9% stake in Australian zinc miner, Votorantim Metais Zincar SA. The acquisition was made through a subsidiary, Sibanye-Stillwater Australia, and is part of the company’s strategy to diversify its portfolio and expand its presence in the global zinc market.
Votorantim Metais Zincar SA is the largest zinc producer in Brazil and is also one of the largest zinc producers in the world. The company operates two zinc mines in Brazil and one in Peru, and produces zinc concentrate and zinc oxide. Sibanye-Stillwater is one of the world’s largest producers of platinum group metals and gold, and is also the largest producer of palladium in North America. The company has been looking to diversify its portfolio and expand its presence in the global zinc market.
The acquisition of the Votorantim Metais Zincar SA stake is part of this strategy, and will allow Sibanye-Stillwater to tap into the growing demand for zinc in the automotive industry. The acquisition is also in line with Sibanye-Stillwater’s long-term growth strategy of expanding its presence in the global zinc market. The company is looking to increase its production of zinc concentrate and zinc oxide, and the acquisition of the Votorantim Metais Zincar SA stake will allow the company to do this.
The acquisition will also give Sibanye-Stillwater access to Votorantim Metais Zincar SA’s extensive portfolio of zinc mines in Brazil and Peru. This will allow the company to increase its production of zinc concentrate and zinc oxide, and will also enable it to tap into the growing demand for zinc in the automotive industry. The acquisition is also expected to provide Sibanye-Stillwater with a foothold in the Latin American zinc market, which is currently experiencing strong growth.
Sibanye-Stillwater CEO Neal Froneman said: “The acquisition of a stake in Votorantim Metais Zincar SA is in line with our strategy of diversifying our portfolio and expanding our presence in the global zinc market. We are confident that this acquisition will enable us to leverage our expertise in mining and processing to unlock value in the zinc market.”
Froneman added that the acquisition will also provide Sibanye-Stillwater with access to the Latin American zinc market, which is currently experiencing strong growth. The acquisition is expected to be completed in the first half of 2021, subject to regulatory approval. Sibanye-Stillwater has not disclosed the financial details of the acquisition.
Sibanye-Stillwater has been on an acquisition spree over the past few years, acquiring a number of companies in the gold, platinum and palladium sectors. The company is now looking to expand its presence in the zinc market, and the acquisition of the Votorantim Metais Zincar SA stake is part of this strategy.
