Rosh Pinah to change hands after Kumba’s split

One of Namibia's two zinc mines, Rosh Pinah Zinc mine will fall under Exxaro Resources - one of the companies that have been formed following the split of Kumba Resources into two entities. Kumba Resources will be split into Anglo American controlled Kumba Iron Ore and an empowerment mining company, Exxaro Resources this month. Kumba's general manager of corporate affairs and investor relations, Trevor Arran confirmed to the Economist this week that Rosh Pinah will fall under Exxaro, which will be dealing in base metals.

Kumba Iron Ore will list on the JSE on 20 November with a market capitalisation of around N$24 billion. Exxaro will also list will a capitalisation of around N$22 billion, making it South Africa's biggest empowerment deal. Arran said neither Kumba Iron Ore nor Exxaro Resources will have a secondary listing on the Namibia Stock Exchange. Arran said the split of Kumba will not result in the Skorpion Zinc mine, which is wholly owned by Anglo American moving into the same stable with Rosh Pinah. Anglo American will own 19% of Exxaro Resources. Kumba produces around 32 million tons of iron ore a year and plans to grow this to 42 million tons by 2009 and over 70 million tons by 2015. About 10 million tons come from outside South Africa.
Kumba Iron Ore will be the world's fourth largest iron ore producer.