South Africa's Only Zinc Refinery Closed After Blast

JOHANNESBURG, Sept. 11 -- South Africa's only zinc refinery, Exxaro Resources Ltd.'s Zincor plant, halted output today after an explosion killed three contractors and injured 12 others.

    Operations were suspended to allow an investigation into the cause of the blast to take place, the Pretoria-based company said in an e-mailed statement today. Exxaro, a South African producer of coal and zinc, will make a decision on restarting activities by tomorrow, it said.

    Preliminary information shows that an explosion occurred in the maintenance contractors' storage area situated near the plant, Exxaro said. The contract workers died after gas bottles stored in containers exploded at about 7 a.m. local time, the National Union of Mineworkers said in an e-mailed statement.

    About 25 percent of Zincor's sales go to ArcelorMittal South Africa Ltd., according to Exxaro's Web site. Output of zinc metal at Zincor fell 6 percent to 44,000 metric tons in the six months through June, Exxaro said on Aug. 20.

    Exxaro rose 2.30 rand, or 2.6 percent, to 90.30 rand in Johannesburg, valuing the company at 32.2 billion rand ($4.3 billion). Exxaro has advanced 26 percent this year.

    Global zinc output exceeded demand last year for the first time since 2003, according to producer Xstrata Plc. Zinc, which is mostly used to protect steel against corrosion, has gained 57 percent in London this year, rebounding from a 49 percent slump in 2008.

    (Source: Bloomberg)