Glencore International Plc, the largest publicly traded commodities company, is emerging as the preferred bidder for the 50.04% stake in Namibia’s Rosh Pinah Zinc mine held by Exxaro Resources Limited.

A person familiar with the negotiations said that the offer by Baar, Switzerland based Glencore is favored over one from London based Vedanta Resources Plc. Exxaro spokesman Hilton Atkinson said in an e-mail today that the company is in discussions with preferred bidders.

Mr Ivan Glasenberg CEO of Glencore who led the company to USD 10 billion initial public offering in May said that in August the commodities trader is aggressively seeking mergers and acquisitions as market valuations slide. Exxaro is aiming to sell the mine in southern Namibia as it exits the zinc industry to focus on its coal and mineral sands operations.

Exxaro said that in July it will close its Zincor zinc refinery in South Africa and the company said in August that it planned to sell its Rosh Pinah stake by the end of 2011. Rosh Pinah produces about 70,000 tonnes of zinc a year and 28,000 tonnes of lead.
(Sourced from Bloomberg.net)