Global lead mine production is forecast to reach about five-million tonnes by 2020 from 4.57-million tonnes as demand increases, representing a compound annual growth rate of 2.1%, says global research and consulting firm GlobalData, noting the automobile industry as a major demand driver.

GlobalData’s report, ‘Global Lead Mining to 2020’, published in January, states that this growth can be attributed to various upcoming lead projects, including base metals mining, exploration and development company MMG’s Dugald River project, in north-west Queensland, Australia.

The optimised mine plan will support an operation of 1.7-million tons a year with yearly production of about 170 000 t. The mine will operate over an estimated 25 years while the orebody remains open at depth. The project is now 45% complete and remains on target for first concentrate production in the first half of 2018.

Diversified Canadian base metals mining company Lundin Mining’s Ozernoe zinc mine joint venture with Russian financial company IFC Metropol, in Russia, and Canadian-based junior silver producer Americas Silver Corporation’s San Rafael zinc-lead-silver deposit, in Mexico, are also noted in the report, which GlobalData says covers comprehensive information on lead reserves by country, major operating mines and lead grade.

It also reviews historic data from 2000 to 2015, and provides forecast data on global lead mine production, metal consumption and prices to 2020. The report further discusses demand drivers for lead and profiles major operating lead mines in Asia-Pacific, Europe, Oceania, the Middle East and Africa, South and Central America, North America and the former Soviet Union, as well as the exploration and development projects in these regions. It also offers company details, including company overviews and business descriptions. Companies mentioned in the report include diversified and vertically integrated commodity producer, processor and trader Glencore, and diversified natural resource company Teck Resources.

“A major driver of demand for lead is the global automobile industry. Lead is predominantly used in manufacturing lead-acid batteries which are widely consumed in automobiles. In 2015, global automobile production was 90.7-million units, including 68.5-million cars and 22.2-million commercial vehicles,” explains GlobalData head of research and analysis for mining Cliff Smee.

The company indicates that, in 2015, the global lead mine (or metal content in the ore) production plunged 7.8% to 4.6-million tonnes as production from China declined by a substantial 25.2%, followed by Australia at 10.6% and the US at 5.5%. It notes that this was due to sluggish economic conditions and falling demand for lead-acid batteries, resulting in global lead prices falling by 14.7% over the same period. However, the company postulates that it is likely that demand since 2015 has recovered.

GlobalData offers advanced analytics to help clients make better, more informed decisions. It bases its research and analysis on the knowledge of over 700 qualified business analysts and conducts 25 000 interviews with industry insiders every year. This, it says, enables GlobalData to offer “relevant, reliable and actionable strategic business intelligence” on a range of industries.