Nyrstar agrees European zinc marketing deal with Noble
BRUSSELS (Reuters) - Nyrstar (NYR.BR), the world's largest zinc smelter, said on Tuesday it had agreed a deal with Noble Group Limited (NOBG.SI) under which the trading house would sell Nyrstar's European zinc and also take a 1 percent stake in the Belgian company.
Under the agreement, running for four years from the start of 2014, Nyrstar would set aside 200,000 tonnes per year of commodity grade and continuous galvanising grade zinc for Noble.
Nyrstar would receive the market price plus a benchmark premium per tonne, with a profit-sharing mechanism for any upside.
Nyrstar said it had decided to limit the tonnage covered by the agreement with Noble and was in talks with other would-be partners for the remaining 150,000 tonnes of commodity grade zinc produced in Europe.
As part of the deal, Noble would also take a 1 percent stake in Nyrstar, buying treasury shares for 6.4 million euros, or 3.76 euros per share, a 5 percent premium to their three-day weighted average on September 27.
Nyrstar was looking for a new partner after commodity firm Glencore (GLEN.L) agreed to drop its marketing deal with Nyrstar, in place since 2008, in order to gain EU regulatory approval for its takeover of Xstrata.
The sale of commodity grade zinc and lead produced from Nyrstar's smelters outside Europe - Clarksville in the United States and Hobart and Port Pirie in Australia - will continue to be covered by an off-take agreement with Glencore Xstrata.
(Reporting by Philip Blenkinsop)
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