Zinifex
Encyclopedia
Zinifex was an Australia
n company which operated two zinc
and lead
mines, three zinc
refineries
and a lead
smelter. It was created following the insolvency of Pasminco in 2002, taking on Pasminco operations. In 2008 it merged with Oxiana Limited
to form OZ Minerals
.
positions that contributed to the company's insolvency. As part of the insolvency process the company was refloated with new management as Zinifex. Since floating on the ASX it has been extremely successful mainly due to the company keeping no hedges
in place, and benefiting from the massive rise in the zinc price. The share price has risen from $1.80 in April 2004 to over $18 in December 2006.
On 1 July 2008, Zinifex merged with Oxiana. Soon after, the merged entity took the name, OZ Minerals
.
, a large open cut zinc, lead and silver mine, operating on a mining lease that it has secured for at least the life of the mine; Rosebery Mine, a medium-sized underground zinc, lead, silver, gold and copper mine located on the west coast
of Tasmania
in Australia; Port Pirie
Smelter, a primary lead smelting facility; Australian Refined Alloys, an acid battery and lead recycling business owned 50% by Zinifex; Budel
Smelter, an electrolytic smelter, and Clarksville Smelter, a modern smelter to access a large portion of the United States
zinc market.
Zinifex operates in Australia, Europe and the United States of America.
In December 2006, Zinifex announced it would merge its smelting operations with those of Umicore
, with the intent of eventually floating the new company Nyrstar
. This would leave Zinifex as purely a mining company. Nyrstar was floated in October 2007, with the initial public offering
being valued at A$3.6 billion.
In early 2007, a number of incidents affected Zinifex: The Port Pirie smelter had a steam explosion in February and an explosion when moisture contacted molten copper in March. It also had a loading barge used to export ore from the Century Mine damaged in a cyclone.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n company which operated two zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
and lead
Lead
Lead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...
mines, three zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
refineries
Refinery
A refinery is a production facility composed of a group of chemical engineering unit processes and unit operations refining certain materials or converting raw material into products of value.-Types of refineries:Different types of refineries are as follows:...
and a lead
Lead
Lead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...
smelter. It was created following the insolvency of Pasminco in 2002, taking on Pasminco operations. In 2008 it merged with Oxiana Limited
Oxiana Limited
Oxiana Limited was an Australia-based copper and gold miner and exploration company. The company's operations were located in Laos, Australia, Cyprus and the Philippines...
to form OZ Minerals
OZ Minerals
OZ Minerals is an Australian mining company, formed from the merger of Oxiana Limited and Zinifex in 2008.In 2009, Chinese state owned China Minmetals proposed a purchase of the heavily indebted company. The Chinese proposal was one of three high profile moves by Chinese firms to acquire stakes in...
.
History
Zinifex was the refloated company of the failed zinc miner Pasminco. Pasminco called in administrators in September 2001, and was declared bankrupt after it made unfavourable hedgeHedge (finance)
A hedge is an investment position intended to offset potential losses that may be incurred by a companion investment.A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, many types of...
positions that contributed to the company's insolvency. As part of the insolvency process the company was refloated with new management as Zinifex. Since floating on the ASX it has been extremely successful mainly due to the company keeping no hedges
Hedge (finance)
A hedge is an investment position intended to offset potential losses that may be incurred by a companion investment.A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, many types of...
in place, and benefiting from the massive rise in the zinc price. The share price has risen from $1.80 in April 2004 to over $18 in December 2006.
On 1 July 2008, Zinifex merged with Oxiana. Soon after, the merged entity took the name, OZ Minerals
OZ Minerals
OZ Minerals is an Australian mining company, formed from the merger of Oxiana Limited and Zinifex in 2008.In 2009, Chinese state owned China Minmetals proposed a purchase of the heavily indebted company. The Chinese proposal was one of three high profile moves by Chinese firms to acquire stakes in...
.
Operations
Zinifex Limited was engaged in minerals exploration, production and smelting to produce zinc and lead concentrates, and zinc, lead and silver metals together with various alloys and byproducts, and the marketing of these products. The segments of the Company include Century Mine in north western QueenslandQueensland
Queensland is a state of Australia, occupying the north-eastern section of the mainland continent. It is bordered by the Northern Territory, South Australia and New South Wales to the west, south-west and south respectively. To the east, Queensland is bordered by the Coral Sea and Pacific Ocean...
, a large open cut zinc, lead and silver mine, operating on a mining lease that it has secured for at least the life of the mine; Rosebery Mine, a medium-sized underground zinc, lead, silver, gold and copper mine located on the west coast
West Coast, Tasmania
The West Coast of Tasmania is the part of the state that is strongly associated with wilderness, mining and tourism, rough country and isolation...
of Tasmania
Tasmania
Tasmania is an Australian island and state. It is south of the continent, separated by Bass Strait. The state includes the island of Tasmania—the 26th largest island in the world—and the surrounding islands. The state has a population of 507,626 , of whom almost half reside in the greater Hobart...
in Australia; Port Pirie
Port Pirie, South Australia
-Transport:Port Pirie is located off National Highway One. It is serviced by an airport five minutes out of the city.- Railways :The first railways in Port Pirie were of the narrow [3' 6"] gauge....
Smelter, a primary lead smelting facility; Australian Refined Alloys, an acid battery and lead recycling business owned 50% by Zinifex; Budel
Budel
Budel is a village in the Dutch province of North Brabant. It is located in the municipality of Cranendonck, 25 km outside Eindhoven. Kempen Airport is located near Budel.Budel used to be a separate municipality...
Smelter, an electrolytic smelter, and Clarksville Smelter, a modern smelter to access a large portion of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
zinc market.
Zinifex operates in Australia, Europe and the United States of America.
In December 2006, Zinifex announced it would merge its smelting operations with those of Umicore
Umicore
Umicore N.V. is a multinational materials technology company headquartered in Brussels, Belgium. Formed in 1989 by the merger of four companies in the mining and smelting industries, Umicore has since reshaped itself into a more technology-focused business encompassing such areas as the refining...
, with the intent of eventually floating the new company Nyrstar
Nyrstar
Nyrstar N.V is the world’s largest zinc metal producer and is also one of the world’s largest primary lead smelting and refining companies. It was formed on 31 August 2007 through a merger between the zinc alloys operations of the Belgian company Umicore and the zinc and lead smelting operations of...
. This would leave Zinifex as purely a mining company. Nyrstar was floated in October 2007, with the initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
being valued at A$3.6 billion.