Reuters reported that South African miner Exxaro will cease operations at its unprofitable Zincor refinery on December 31st 2011 after it failed to sell the plant.

Exxaro said that it has plans to exit the zinc business and focus on growing more lucrative parts of its operations, including coal and iron ore mining. The ramp down of the operation to a mothballed state has started. Up to 796 employees will be affected by the shutdown. It has plans in place to meet its supply agreements.

Mr Sipho Nkosi CEO of Exxaro said that "We are taking all feasible steps to provide the most suitable options to affected employees, customers and suppliers."

Exxaro's zinc portfolio also includes a 50.04% interest in the Rosh Pinah zinc and lead mine in Namibia and 22% interest in the Chifeng zinc smelter in China. The miner said that talks on the sale of its shareholding in Rosh Pinah and Chifeng were ongoing.

(Sourced from Reuters)