Zinifex Remains Interested in Sons of Gwalia Tantalum Assets

Melbourne-based zinc and lead miner Zinifex has expressed its continued interest in acquiring the tantalum assets of failed miner Sons of Gwalia, despite reports of a possible relisting on the Australian Stock Exchange. Sons of Gwalia collapsed in 2004 due to significant debt and mining problems, but its tantalum assets, which account for 75% of the world's production, have attracted attention from potential buyers. Zinifex, which has stated that the tantalum assets align with its strategy of entering a niche market, is willing to pursue the acquisition if the price is favorable to its shareholders.

Key Takeaways:

• Zinifex remains interested in acquiring the Sons of Gwalia tantalum assets, despite potential relisting on the Australian Stock Exchange.
• Sons of Gwalia's tantalum assets, which account for 75% of the world's production, have attracted attention from potential buyers.
• The mining assets were sold off last year, but the operation of the two tantalum mines in Western Australia is currently being managed by the administrator.
• Any relisting or sale of the failed miner is on hold until a price dispute with offtake partner Cabot Corporation is resolved.
• Zinifex is interested in acquiring the assets only if the price is favorable to its shareholders.

Statistics:

• 75%: Sons of Gwalia's market share of the world's tantalum production.
• 2004: The year Sons of Gwalia collapsed due to debt and mining problems.
• 1: Zinifex's share of the potential acquisition, subject to a favorable price.

Sources:

• "Zinifex still keen on Sons of Gwalia," Asia Pulse, Jan 27.