Goldcorp: Penasquito Zinc Concentrate Output at 180000 T in 2010

LONDON, Jan. 13 --Canadian gold miner Goldcorp Inc. (G.T) expects zinc concentrate output at its new Penasquito mine in Mexico to reach half its total capacity of 300,000 metric tons in 2010 and full capacity in 2011, Chief Executive Chuck Jeannes said in an interview Tuesday. Penasquito should produce 180,000 tons of zinc concentrate and 88,000 tons of lead concentrate in 2010.

Production should reach 300,000 tons of zinc concentrate and 180,000 tons of lead concentrate in 2011 once the second production line is finished later in 2010. "By the end of the year, we'll be fully up and running," Jeannes said. Goldcorp is among the world's top ten gold producers.

Its new Penasquito mine is primarily a gold and silver mine, but it will also be among the biggest new zinc and lead mines in recent years. Jeannes said Goldcorp has signed or is putting the finishing touches on long-term offtake agreements with five zinc and lead smelters for the concentrates. Most of the zinc will be sold to Korea Zinc (010130.SE), with the rest going to Teck Resources Ltd.(TCK.A.T), Nyrstar S.A. (NYR.BT) and Industria Penoles S.A.B. DE C.V.(PE&OLES.MX).

The majority of the lead output will be sold to Penoles, as well as Teck, Nyrstar's smelters in Belgium and Australia and Korea Zinc. Pricing and treatment charges for the long-term agreements will be set annually, with this year's pricing likely to take place in February and March, when industry benchmarks are typically negotiated, Jeannes said.