Xstrata Subsidiary Considers Closing Recycling Plant

Britannia Refined Metals Ltd. has proposed closing its recycling facility in Northfleet, UK by the end of the year. BRM is a wholly owned subsidiary of Xstrata Zinc. The company is in discussions with its union and employees over the possible closure.

Santiago Zaldumbide, chief executive of Xstrata Zinc, said, “In the due diligence and integration processes entered into as part of the acquisition of MIM, Xstrata identified a number of initiatives to optimiz the lead business of the former MIM. The recycling operation at BRM has achieved only marginal profitability at best over the last several years and it is now at a point where future investment is required but impossible to justify.

“To secure the ongoing profitability of BRM, we therefore propose to close down the recycling line. BRM will meet all its 2003 contractual obligations and, wherever possible, will assist customers affected by the closure to source supply from other producers for 2004.”

With the closure of the second line in March 2003 and the proposed closure of the recycling line, BRM would comprise a single lead refining operation that would continue to process crude lead from Xstrata’s Mount Isa mine in Australia.

Xstrata is a global diversified mining group based in Switzerland. It operates a host of facilities throughout the world.