Nyrstar : Nyrstar reaches settlement with Glencore on Commodity Grade Off-take Agreement and shareholding

Nyrstar : Nyrstar reaches settlement with Glencore on Commodity Grade Off-take
                          Agreement and shareholding

16 April 2013

Nyrstar today  announced that  it  has reached  a negotiated  settlement  with 
Glencore International  AG ("Glencore")  in relation  to its  Commodity  Grade 
Off-take Agreement (the "Off-Take  Agreement") for the  sale and marketing  of 
commodity grade zinc metal produced by Nyrstar within the European Union,  and 
Glencore's 7.79% shareholding  in Nyrstar.  This follows  the requirement  for 
Glencore to end these aspects of its relationship with Nyrstar as part of  the 
remedy package agreed  by the  European Commission in  relation to  Glencore's 
proposed merger with Xstrata Plc ("Xstrata").

Summarised, under the terms of the settlement the following has been agreed:

  *By 31 December 2013 Nyrstar will cease to sell to Glencore commodity grade
    zinc metal  produced at  Nyrstar's smelters  located within  the  European 
    Union (Auby, Balen/Overpelt and Budel).
  *With  respect  to  the  above,  Glencore  has  agreed  to  pay  Nyrstar  a 
    termination fee of EUR 44.9 million.
  *The sale of commodity grade zinc and lead produced from Nyrstar's smelters
    outside of the European  Union (Clarksville, Hobart  and Port Pirie)  will 
    continue as before under the Off-take Agreement.
  *Nyrstar has agreed to acquire  Glencore's entire shareholding of 7.79%  of 
    common shares for EUR 3.39 per  share (a discount of approximately 10%  to 
    the 5-day  volume weighted  average price,  and 5%  to the  closing  share 
    price, of Nyrstar shares on 15 April 2013), for a total cash consideration
    of EUR 44.9 million.

Nyrstar will hold the acquired shares as treasury stock and will look to place
the shares with suitable investors over time.

The above  settlement will  become  final upon  the successful  completion  of 
Glencore's merger with Xstrata, which is  expected to be in approximately  two 

Nyrstar is  in the  process of  determining the  most suitable  channel(s)  to 
market and  sell the  commodity  grade zinc  metal  produced at  its  European 
smelters. Options  available to  Nyrstar include  bringing the  marketing  and 
sales of  this volume  in-house, tendering  this volume  to third  parties  or 
entering into  partnering arrangements,  with numerous  enquiries having  been 
made on the  availability of  this metal over  the past  months. Nyrstar  will 
provide an update on the outcome of this process in due course.

Commenting on the settlement, Roland Junck, Nyrstar's Chief Executive  Officer 

"The settlement reached  between Nyrstar  and Glencore  represents a  positive 
outcome for  both parties.  Nyrstar has  been adequately  compensated for  the 
amendment to its Commodity Grade Off-take  Agreement and at the same time  has 
been able to  secure Glencore's  shareholding, which  will allow  us to  place 
those shares  with suitable  investors  over a  timeframe which  Nyrstar  will 
determine. We will continue  to have a  commercial relationship with  Glencore 
through the sale of  our commodity grade zinc  and lead from our  non-European 
smelters and through the sale of concentrates between the two companies.

We are reviewing the options available to us with respect to the marketing and
sale of the commodity grade zinc  metal produced at our European smelters.  We 
have  entered  into  discussions  with  a  number  of  interested  parties  to 
potentially tender the volume or  enter into partnering arrangements. We  are 
also reassessing the  value of  bringing this  function back  in-house as  the 
volume also provides a  unique opportunity for us  to create further value  by 
leveraging our commercial acumen, market insight and scale."

                                   - end -

About Nyrstar
Nyrstar is  an integrated  mining  and metals  business, with  market  leading 
positions in zinc and lead, and  growing positions in other base and  precious 
metals; essential  resources  that are  fuelling  the rapid  urbanisation  and 
industrialisation of our  changing world.  Nyrstar has  mining, smelting,  and 
other operations  located in  Europe, the  Americas, China  and Australia  and 
employs over 7,000  people. Nyrstar  is incorporated  in Belgium  and has  its 
corporate office in Switzerland. Nyrstar  is listed on NYSE Euronext  Brussels 
under the  symbol  NYR.  For  further information  please  visit  the  Nyrstar 
website, www.nyrstar.com

For further information contact:
Jaideep Thatai Manager Investor Relations T: +41 44 745 8103 M: +41 79
722 3089 jaideep.thatai@nyrstar.com
Sheela Pawar de Groot Group Manager Corporate Communications T: +41 44 745
8154 M: +41 79 722 6917 sheela.pawar@nyrstar.com
Geert Lambrechts Manager Corporate Communications T: +32 14 449 646 M:
+32 473 637 892 geert.lambrechts@nyrstar.com

The full press release can be downloaded from the following link:

Press Release (French)
Press Release (Dutch)
Press Release (English)


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information contained therein.

Source: Nyrstar via Thomson Reuters ONE
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