Zinc industry facing period of uncertainty

Not unlike the past 18 months, the next 10 years will be a period of significant change and uncertainty for the zinc industry, says Brook Hunt & Associates of England.

The research firm, in its study “The zinc concentrate market to 2005,” predicts that, before 2005, reserve depletion will force 58 zinc mines to close. It is estimated these mines have an annual production capacity of 1.9 million tonnes.

Five of these mines each produce more than 100,000 tonnes annually of zinc-in-concentrate and a further 10 each produce more than 50,000 tonnes per year.

Brook Hunt says the magnitude of closures during a relatively short period of time is unprecedented in the history of the industry.

Only 18 of 54 primary smelters are well-covered for feed to the year 2005 from mines currently in production, says the research firm. Not only does the industry need an additional 1.3 million tonnes per year of contained zinc from new mine production in order to meet the feed requirements of existing smelters by 2005; it also requires a similar tonnage to feed 1.2 million tonnes annually of new smelter capacity. The new capacity will be needed to satisfy a forecast market demand of more than 6.5 million tonnes per year of refined zinc by 2005.

The overall supply situation will not be as desperate as the figures suggest, Brook Hunt says, for there are several mine projects that will undoubtedly be brought into production during the next 10 years.

For more information, contact Brook Hunt & Associates, Woburn House, 45 High Street, Addlestone, Surrey, England KT15 1TU.