'Crunch time' for zinc as China-owned miner seeks supply in Peru
SHANGHAI – Chinese-owned MMG is seeking new zinc deposits in Peru, which has the world’s third-largest reserves, after a dearth of global exploration in past decades led to a supply crunch.
“We’re looking at places like Peru where there’s a lot of zinc,” and the company’s Las Bambas copper mine there gives a base to assess opportunities, CEO Andrew Michelmore said.
“The crunch has finally come,” he said on conference call Thursday. The South American country has the most reserves after Australia and China, US Geological Survey data show.
Zinc, used to rustproof steel, has surged more than 50% from its January low as production cuts at Glencore’s mines and closures at MMG’s Century and Vedanta Resources’s Lisheen operations reduced supplies. Goldman Sachs forecasts a widening global shortage with prices rising to $2 500 a metric ton in six months, compared with $2 181 on Thursday.
MMG, based in Melbourne and owned by China Minmetals, expects to produce 120 000 t to 135 000 t of zinc in 2016 from mines in Australia. The Las Bambas operation in Peru will probably produce 250 000 t to 300 000 t of copper in concentrate this year, the company estimates.
“There is so little zinc around,” Michelmore said. “Those people who are in zinc are also bullish about the zinc market so they don’t want to sell. That’s why we keep coming back to the focus we’ve got on finding zinc.”
Goldman says the global shortage will expand to 360 000 t in 2017 from 114 000 t this year. The metal is the best performer on the London Metal Exchange in 2016 as stores in warehouses monitored by the bourse have fallen about 30% from a September peak.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established in 1983, the ASTPM is an industry association and representative body of the welded carbon steel tube and pipe manufacturers of South...
VISIT SHOWROOM
CSIR International Convention Centre (CSIR ICC) - the leading conference and events venue in Pretoria/Tshwane.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
