Nyrstar: Nyrstar enters into European strategic marketing agreement for commodity grade zinc metal with Noble, a major step in

   Nyrstar: Nyrstar enters into European strategic marketing agreement for
commodity grade zinc metal with Noble, a major step in delivering a new global
                             commercial strategy

Regulated information

Noble to acquire 1% interest in Nyrstar

1 October 2013

Nyrstar today announced that it has entered a strategic offtake and  marketing 
agreement with Noble Group Limited ("Noble") to market and sell a  significant 
portion of commodity grade zinc metal  produced at its European smelters.  For 
Nyrstar, the agreement  represents a  major step  in delivering  a new  global 
commercial strategy which started with  the establishment of a new  Marketing, 
Sourcing and  Sales segment  earlier  in 2013.  It is  also  a first  step  in 
executing a European  zinc metal  plan aimed at  actively marketing  Nyrstar's 
product to  increase  optionality  in  terms of  customers,  product  mix  and 
geography which is expected to deliver improved margins.

The agreement follows a structured process undertaken by Nyrstar to  determine 
the most suitable  channel(s) to market  and sell commodity  grade zinc  metal 
produced  at  its  European  smelters.  This  process  was  triggered  by  the 
requirement for Glencore  International AG  to terminate  its Commodity  Grade 
Off-take Agreement for the  sale and marketing of  commodity grade zinc  metal 
produced by Nyrstar within the European  Union, as part of the remedy  package 
agreed by the European Commission in relation to its merger with Xstrata Plc.

Summarised terms of the strategic  offtake and marketing agreement with  Noble 
are as follows:

  *Nyrstar has decided to make available 200,000 tonnes per annum of
    commodity grade zinc metal (special high grade (SHG) and continuous
    galvanising grade (CGG)) to Noble
  *The agreement has a term of 4 years, commencing 1 January 2014 (the
    European component of the off-take agreement with Glencore Xstrata will be
    fully unwound by 31 December 2013)
  *The metal will be sold and marketed through an arrangement that leverages
    both company's insights and expertise
  *Nyrstar will receive market price plus a benchmark premium per tonne of
    zinc metal, with a profit sharing mechanism for any upside 
  *Financing of the metal will be at comparable terms to that received under
    the previous off-take agreement 

As part of its new global  commercial strategy Nyrstar has concluded that  the 
best way  to  market its  European  commodity grade  zinc  metal is  though  a 
multi-channel approach and therefore limited the annual tonnage covered by the
agreement with Noble. Nyrstar continues to discuss direct sales, marketing and
financing opportunities with a number of market participants for the remaining
150,000 tonnes  (approximately)  of commodity  grade  zinc metal  produced  in 
Europe and will provide an update on these negotiations in due course.

To support the implementation of the  agreement with Noble, the European  zinc 
metal plan and overall global commercial  strategy, Nyrstar has made a  number 
of senior level appointments to its Marketing, Sourcing and Sales segment.

As previously mentioned, 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  with 
Glencore Xstrata.

Noble has agreed  to acquire  from Nyrstar's  treasury shareholding  1,700,225 
common shares in Nyrstar, representing 1% of total shares, for a price of  EUR 
3.76 per share (a premium of 5% to the 3-day volume weighted average price  of 
Nyrstar shares on 27  September 2013), for a  total cash consideration of  EUR 
6.4 million.

Commenting on the strategic  offtake and marketing  agreement with Noble,  Bob 
Katsiouleris, Nyrstar's Senior  Vice President Marketing,  Sourcing and  Sales 

"The strategic  offtake and  marketing  agreement with  Noble is  an  exciting 
commercial opportunity and represents a major step in executing Nyrstar's  new 
global commercial strategy, which is to produce a series of products that will
be marketed and  sold at  above industry  returns through  a better  strategic 
understanding of the markets. The agreement with Noble, a central part of  our 
European zinc metal plan, is much more  than a traditional off-take. It is  an 
active marketing agreement,  by which  Noble and Nyrstar  will target  markets 
where  there  is  real   demand  for  our   product.  By  leveraging   Noble's 
market-leading supply chain expertise and trading capabilities, and  utilising 
Nyrstar's industrial  assets and  European  zinc market  insight, we  will  be 
flexible and responsive to changing  end-user requirements. Combined with  the 
competitive financing terms provided  by Noble, the  agreement will deliver  a 
strategic and financial benefit to Nyrstar.

While the agreement with Noble  is a central part  of our European zinc  metal 
plan, we believe there is significant value in having a multi-channel approach
to actively market our zinc metal  product. We have made significant  progress 
in determining the  best routes to  market for our  remaining commodity  grade 
zinc metal volume,  including on-going  discussions on a  number of  potential 
partnerships with  market participants  , and  are confident  that when  fully 
implemented our European zinc metal plan will deliver above industry returns."

Noble's Global Head of Metals, Mark Hansen said:

"Noble Group  is pleased  to enter  into this  mutually beneficial  multi-year 
offtake and marketing relationship  which we believe will  form the basis  for 
new opportunities for Noble to bring its leading logistics and supply services
to zinc metal consumers with  the reliable market leading Nyrstar  production. 
We are pleased to work with a market leader like Nyrstar and look forward to a
successful long term partnership."

                                   - 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

About Noble
Noble Group (SGX: N21)manages a portfolio of global supply chains covering a
range ofagriculturaland energy products, as well as metals, minerals and
ores. Operating from over140locations and employing more than 70
nationalities, Noble facilitates themarketing, processing,financing and
transportation of essential raw materials.Sourcing bulk commodities from low
costregions such as South America, SouthAfrica, Australia and Indonesia, the
Group supplies highgrowth demand markets,particularly in Asia and the Middle
East. In order to ensure the integrityofits supply chains, the Group has a
portfolio of interests in strategiclogistics and processingassets which form
an integral part of facilitating itskey trade flows. Noble is rankednumber
76 in the 2013 Fortune Global500. For further information please visit
Noble's website, www.thisisnoble.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 Affairs T: +41 44 745 8154 M:
+41 79 722 6917  sheela.pawar@nyrstar.com
Geert Lambrechts  Manager Corporate External 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 (Dutch)
Press Release (English)
Press Release (French)


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Source: Nyrstar via Thomson Reuters ONE
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