Chelyabinsk Zinc says controlling stake to be sold

Chelyabinsk Zinc (CZP), Russia's largest producer of the metal, said on Thursday it has obtained information from unnamed public sources that it will be sold to a consortium led by two copper miners.

The statement did not contain any information on the sale price.

'The controlling shareholders of NF Holdings B.V., which owns a controlling interest in CZP, have reached an understanding to sell 100 percent of NF Holdings BV,' the company said in a statement.

It added that Ural Mining and Metallurgical Co (UMMC) and Russian Copper Co (RMC) are part of the consortium.

The annoucement follows a report by Reuters on Wednesday that a 58 percent stake in the company would be acquired by the copper companies.

CZP did not confirm the size of the stake that the consortium will acquire.

The company, which produces 64 percent of Russia's zinc, posted a net loss of $105 million in 2008 as prices collapsed.

It has cut production sharply in response to weak demand, and in December said 2009 output would be between 100,000 to 110,000 tonnes of zinc, down from 150,000 tonnes in 2008.

CZP said the transaction will not be completed until it receives applicable governmental approvals.

It did not say when it expects to receive these approvals.

(Reporting by Alfred Kueppers; Editing by Greg Mahlich) Keywords: CHELYABINSK ZINC/

(alfred.kueppers@thomsonreuters.com; Tel +7 495 775 1242; Reuters Messaging: alfred.kueppers@thomsonreuters.com@reuters.net)

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