[Zn Price] Will Zinc Price Get a Boost from Expected Mine Closures and Commissioning Delay in Near Term?

SHANGHAI, Jul. 30 (SMM) - Teck Resources’ Duck Pond mine has been suspended June 30. MMG’s Century open cut mine will also close in July, with the last dressing operation expected to be done in Q4 2015. Meanwhile, Vedanta Zinc International’s Lisheen mine will shut down in November.

Will recent and expected closures at zinc mines give a lift to zinc prices in the near term?

"The recent and expected closures at zinc mines overseas are expected to lead to zinc concentrate shortages, and will thus bolster zinc prices in Q4”, SMM zinc analyst says.

"The put off of commissioning at MMG’s Dugald River mine will be another factor bolstering zinc prices”, SMM adds.

"MMG’s Dugald River mine, with designed annual output of 220,000 tonnes, had been scheduled for commissioning in late 2015, but was put off to the first half of 2018, and with planned annual output also cut to 160,000 tonnes. This has forced MMG to lower its zinc concentrate production target for 2016”, said Andrew Michelmore, the company’s Chief Executive Officer in Melbourne.

Market expectations of ore shortages from mine closures and strong demand from China has allowed TCs for imported zinc concentrate to fall. TCs of imported zinc concentrate (50%) were $ 200-215 per dry metric tonne (DMT) in July, down $ 2.5 from June.

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