EXXARO Resources said yesterday it had acquired the mineral sands operation Namakwa Sands from mining giant Anglo American for about R2bn.

Exxaro said it had also concluded the purchase of a 26% stake in Anglo’s Black Mountain Mining and Gamsberg project for R180m. Both of the deals were approved by Exxaro last year, and were part of a deal whereby Anglo granted Exxaro options over the interests.

Anglo gave Exxaro the options when Exxaro was spun off from Kumba Resources in 2006, and merged with unlisted Eyesizwe Coal to form the country’s biggest diversified black-owned mining firm. That transaction, conducted under SA’s affirmative action policy, also led to the listing in Johannesburg of Anglo’s unit, Kumba Iron Ore .

Namakwa Sands’ major assets include a mineral sands mine, a mineral separation plant and a smelter in Western Cape . The business produces 125 kiloton s of zircon, 185 kilotons of titania slag and 100 kiltons of pig iron a year.

“These acquisitions position Exxaro strategically as one of the world’s top three suppliers of high-grade titanium dioxide feedstock and zircon,” Exxaro CEO Sipho Nkosi said.

The Black Mountain operation mines lead, zinc, copper and silver. About 45 kilotons a year of zinc concentrate is supplied to Exxaro’s zinc metal refinery in Gauteng .

The Gamsberg zinc project is potentially a large-scale open-pit mine , with a production capacity of about 300 kiloton s a year .

Nkosi said the units would strengthen Exxaro’s leading position in SA’s zinc market. – Business Day