Bloomberg reported that Exxaro Resources Limited said that the unit had a very positive Q1 after the price of the metal recovered from a 4 ½ year low.

It said that “We’ve been pleasantly surprised by the uptick in prices and as a result the business in the Q1 has been very positive as opposed to 2008.”

Mr Sipho Nkosi CEO of Exxaro said that after the company’s annual general meeting on May 8. He said tat Exxaro will make a decision on the unit after a board meeting in August.

According to Swiss producer Xstrata Plc, zinc producers have closed mines in Peru and the US in the past year after prices tumbled as demand collapsed. The metal, which is mostly used to protect steel against corrosion, slumped 49% on the London Metal Exchange in 2008. Global production exceeded use last year for the first time since 2003.

(Sourced from Bloomberg)