Exxaro to stick to loss making zinc business for now

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JOHANNESBURG | Tue Feb 24, 2009 11:21am GMT

JOHANNESBURG Feb 24 (Reuters) - Exxaro (EXXJ.J) will stick to its loss making zinc business for now, betting on future demand from South Africa and beyond, and said it expects the market to pick up in 2010, the chief executive said on Tuesday.

"We will stick with it for now, although as any other businesses, it is under constant review," Exxaro's Chief Executive Officer Sipho Nkosi said during a results presentation.

"There is a market for it, and not only in South Africa ... it's a cyclical business and will be a challenge, but we believe that towards the end of 2010 the situation will get better."

Exxaro is the only zinc producer in South Africa.

(Reporting by Agnieszka Flak)

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