South Africa-based Industrial Development Corporation (IDC) was an intended buyer of Exxaro’s stake in Vedanta Resources’ Black Mountain Mining zinc operations, but IDC has backed off citing changes in its strategic focus. Exxaro has failed to dispose its stake in the absence of a buyer. 

 

Black Mountain Mining (BMM) is a South African mine with Vedanta holding 69.6pc and Exxaro 24.4pc. BMM mines zinc, lead, copper and silver, hoisting 1.7mn mt of ore annually with a production capacity of 90,000mt metal-in-concentrate. 

 

Exxaro reported that IDC is not willing to buy its 24.4pc stake in BMM after the corporation changed its strategic priorities given the prevailing pandemic and the economic conditions. Exxaro put up its stake for sale in 2019 concluding that zinc mining did not fit in line with its long-term objectives. Exxaro has interests in iron ore, energy markets, mineral sands and coal. 

 

Now that IDC has backed out of the stake purchase citing reprioritisation of its capital allocation to ensure support to downstream opportunities and job creation given the current situation. The mission of the Industrial Development Corporation is to contribute to the creation of balanced, sustainable economic growth in South Africa and on the rest of the continent and to promote entrepreneurship. 

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