Zinifex

Zinifex was an Australian resources company created in April 2004 from the profitable mining, smelting and refining assets separated from the failed Pasminco group. Its principal activities covered mineral exploration, mine operation, mineral processing, smelting, refining and the marketing of zinc, lead and associated metals. The company’s portfolio included the Century zinc-lead-silver mine in Queensland, the Rosebery polymetallic mine in Tasmania, and smelters and downstream facilities in Australia, the Netherlands and the United States. The company emerged from the restructuring of Pasminco, which entered voluntary administration in September 2001. During the administration, some assets were sold, while the remaining profitable operations were assembled into the new Zinifex entity. Zinifex was floated on the Australian Securities Exchange in April 2004. Its early public-market performance was strongly supported by the rising zinc price. The company retained exposure to market prices rather than relying on extensive hedging, and its share price increased substantially during the first years after listing. Zinifex operated across the mining and metals value chain. The Century Mine near Mount Isa was a large open-cut operation producing zinc, lead and silver concentrates. Rosebery was an underground mine producing zinc, lead, silver, gold and copper-bearing output. The company also controlled or participated in lead and zinc smelting and refining assets, including the Port Pirie lead smelter, Budel electrolytic zinc smelter in the Netherlands, and Clarksville zinc smelter in the United States. Australian Refined Alloys, a lead-acid battery recycling and lead recovery business, was held through a joint venture with Sims Metal. A major strategic change occurred in December 2006, when Zinifex announced an agreement to combine its smelting operations with those of Umicore. The combination created Nyrstar, which was floated in October 2007. After the transaction, Zinifex became primarily a mining company rather than an integrated mining-and-smelting group. The transition also simplified its operating portfolio and separated its upstream mining exposure from the international smelting business. Zinifex’s final phase included operational disruptions at Port Pirie in early 2007. A steam explosion occurred in February, followed by another incident in March involving moisture contacting molten copper. A loading barge used to export material from the Century operation was also damaged by a cyclone. These events affected parts of the company’s operating network but did not create a separate long-term brand identity beyond Zinifex’s role as a diversified base-metals producer. On 1 July 2008, Zinifex merged with Oxiana. The combined company adopted the name OZ Minerals, bringing Zinifex’s zinc and lead mining assets together with Oxiana’s broader mining portfolio. Zinifex therefore became a historical corporate brand rather than an active standalone mining company. Its legacy is associated with the post-Pasminco restructuring, the development and operation of major Australian base-metals assets, and the corporate separation of mining and smelting activities that preceded the formation of Nyrstar and OZ Minerals.

Zinifex originated in the collapse and restructuring of Pasminco, an Australian mining and metals group. Pasminco entered voluntary administration in September 2001. During the administration, administrators sold some assets and reorganized the profitable assets that remained. Those assets were transferred into a new company, Zinifex, which was established in April 2004 and listed on the Australian Securities Exchange during the same month. The newly listed company inherited a portfolio spanning mining, mineral processing, smelting and refining. Its major mining assets included the Century Mine near Mount Isa in Queensland and the Rosebery Mine in Tasmania. Century was a large open-cut zinc, lead and silver mine, while Rosebery was an underground polymetallic operation producing zinc, lead, silver, gold and copper-bearing materials. The company also held smelting facilities including the Port Pirie lead smelter in South Australia, the Budel electrolytic zinc smelter in the Netherlands and the Clarksville zinc smelter in the United States. Through a joint venture with Sims Metal, Zinifex also owned half of Australian Refined Alloys, a business involved in lead recovery and acid-battery recycling. Zinifex benefited considerably from the zinc-price environment following its public listing. The company maintained comparatively direct exposure to zinc prices by not keeping hedges in place, and the rise in zinc prices contributed to strong market performance. The reference account records an increase in the company’s share price from A$1.80 at listing in April 2004 to more than A$18 in December 2006. This market performance helped establish Zinifex as a significant Australian base-metals company during the middle of the 2000s. In December 2006, Zinifex announced plans to combine its smelting assets with those of Umicore. The transaction created Nyrstar, an international zinc and lead smelting company that was floated in October 2007. The deal materially changed Zinifex’s identity and operating structure: once the smelting assets had been transferred, Zinifex became a primarily mining-focused company. The separation also divided the upstream mining business from the international smelting platform. The company experienced several operational incidents in early 2007. A steam explosion occurred at Port Pirie in February, and another explosion followed in March when moisture came into contact with molten copper. In addition, a barge used to load Century Mine exports was damaged during a cyclone. These incidents were part of the operational history of Zinifex’s final period, when the company was managing a geographically dispersed network of mines, smelters and export logistics. Zinifex ultimately did not remain independent. On 1 July 2008, it merged with Oxiana, another Australian mining company. The combined business became OZ Minerals. The merger ended the Zinifex corporate brand as an active standalone entity. Historically, Zinifex is therefore best understood as the post-Pasminco company that assembled major zinc and lead assets, benefited from the mid-2000s zinc cycle, separated its smelting operations into Nyrstar, and then joined with Oxiana to create OZ Minerals.

• 2008

  Merger with Oxiana creates OZ Minerals

  [1]Zinifexen.wikipedia.org

  Zinifex merged with Oxiana on 1 July, forming OZ Minerals and ending Zinifex’s standalone corporate existence.

• 2007

  Nyrstar is floated

  [1]Zinifexen.wikipedia.org

  Nyrstar, formed from the Zinifex and Umicore smelting operations, was floated in October. Zinifex consequently became a pure mining company.

• 2006

  Smelting combination with Umicore announced

  [1]Zinifexen.wikipedia.org

  Zinifex announced a combination of its smelting operations with Umicore’s, creating the platform that became Nyrstar.

• 2004

  Zinifex is established and listed

  [1]Zinifexen.wikipedia.org

  The profitable assets remaining after the Pasminco restructuring were spun off into Zinifex, which was established and listed on the Australian Securities Exchange in April.

• 2001

  Pasminco enters voluntary administration

  [1]Zinifexen.wikipedia.org

  Pasminco was placed in voluntary administration in September, beginning the restructuring process from which Zinifex emerged.

A listed Australian base-metals producer and smelting group with an emphasis on zinc and lead mining, processing and international metals operations. After the formation of Nyrstar, its positioning shifted toward a focused mining company before its 2008 merger with Oxiana.

• Open-cut zinc, lead and silver mine

  Century Mine

  Century was Zinifex’s large open-cut mine near Mount Isa in Queensland. It produced zinc, lead and silver concentrates and operated under a mining lease intended to cover the life of the mine. The operation was also supported by a loading barge used to export material, which was damaged by a cyclone during Zinifex’s final operating period.

• Underground polymetallic mine

  Rosebery Mine

  Rosebery was a medium-sized underground mine in Tasmania. Its polymetallic output included zinc, lead, silver, gold and copper-bearing materials. It formed part of the mining portfolio inherited from the Pasminco restructuring and remained one of Zinifex’s core Australian mining operations.

• Primary lead smelter

  Port Pirie Smelter

  The Port Pirie facility in South Australia was a primary lead smelting operation. It processed lead-bearing materials into lead metal and associated products. The site experienced a steam explosion in February 2007 and another explosion in March when moisture contacted molten copper.

• Electrolytic zinc smelter

  Budel Smelter

  Budel was Zinifex’s electrolytic zinc smelter in the Netherlands. It represented the company’s European smelting presence and was among the smelting assets combined with Umicore’s operations to form Nyrstar.

• Zinc smelter

  Clarksville Smelter

  The Clarksville facility was a modern zinc smelter in the United States. Its location provided access to a substantial portion of the US zinc market. The asset became part of the smelting business separated from Zinifex through the Nyrstar transaction.

• Lead recycling and battery-materials business

  Australian Refined Alloys

  Australian Refined Alloys was a lead recycling and acid-battery recovery business owned 50 percent by Zinifex through a joint venture with Sims Metal. It extended Zinifex’s activities beyond primary mining and smelting into secondary lead recovery.

• 2008

  Merge with OxianaM&A

  Background

  After the smelting operations had been separated into Nyrstar, Zinifex was primarily a mining company with major zinc, lead and silver assets.

  Action taken

  Zinifex merged with Oxiana on 1 July 2008.

  Aftermath

  The combined company was named OZ Minerals, ending Zinifex’s existence as an independent corporate brand.

  Source

• 2006

  Combine smelting operations with UmicoreM&A

  Background

  Zinifex operated mines as well as lead and zinc smelters across Australia, Europe and the United States. In December 2006, it announced a plan to combine its smelting portfolio with the corresponding operations of Umicore.

  Action taken

  The smelting assets were placed into a new company, Nyrstar, which was subsequently floated in October 2007.

  Aftermath

  The transaction left Zinifex focused on mining while Nyrstar became the separate smelting platform.

  Source

1. 1Zinifexen.wikipedia.org