World's Biggest Zinc Smelter/Refiner to Expand into Mining

BRUSSELS, June 25 -- Belgium's Nyrstar (NYR.BR: Quote), the world's biggest producer of zinc, said on Wednesday it intended to integrate its metals smelting business by expanding into mining operations.

    In a strategy update, the group said it would focus on resources that would support its existing assets and in which it already had expertise.

    Its recent acquisition of a mine complex in Tennessee, in the United States, was an example of the strategic direction it was taking, it said.

    "In addition to our publicly stated focus on costs and asset optimisation, our strategy focuses on the pursuit of value creation through initiatives to improve and expand our existing business, whilst conserving cash to selectively pursue opportunities to grow, including in mining," Chief Executive Roland Junck said in a statement.

    He added that Nyrstar would evaluate consolidation opportunities as and when they arose.

    Nyrstar named Junck as its new chief executive in February after a slew of grim news at the company.

    The group said at the end of April it was planning to transform the cost structure across the entire company, which would result in over 50 million euros ($69.29 million) in cost savings per year from 2010.

    Junck said at the time that the group would realise half of that target in cost savings in 2009.

    (Source: Reuters)