In H1 2024, due to the slow release of the expected production increase from lead-zinc mining projects, the gradual resolution of mining disruptions, and the additional capacity brought by the resumption of European smelters, the shortage of lead concentrate supply in H1 2024 led to domestic pb50TC and pb60TC hitting historical lows. According to the quarterly production reports released by major overseas lead-zinc and precious metal mining companies (detailed lead metal production data from major global mines and smelters can be found in the SMM metal industry chain database), compared to 2023H1, lead concentrate production in Europe generally recovered lower-than-expected, while production in the Americas and Oceania mainly focused on recovery.
European Market
In H1 2024, despite marginal production increases from some mines, lead concentrate production in the European market mainly declined.
On the reduction side, Boliden's Tara mine, which was expected to restart in 2024Q2, may delay its actual production recovery plan to 2024Q4, with full recovery by January 2025. Additionally, Glencore's Kazzinc mine in Kazakhstan saw continuous production declines in H1 2024, and Glencore is considering selling its stake in the Kazakh mining company Kazzinc.
On the increase side, Boliden's other two projects saw slight YoY production increases—Garpenberg's milling volume increased in Q1, and THE BOLIDEN AREA experienced grade fluctuations. Lundin's Neves-Corvo and Zinkgruvan expansion projects increased production as scheduled in 2024H1. Additionally, Adriatic Metals officially launched its Vares silver-zinc-lead mine project in central Bosnia on March 5, 2024, expected to produce approximately 65,000 mt of lead-silver concentrate and 90,000 mt of zinc concentrate annually.
American Market
In H1 2024, lead concentrate metal production in the Americas recorded YoY growth, mainly due to the production increase at Buenaventura's Uchucchacua mine, the resumption of production at the Peñasquito mine after previous shutdowns, and the production recovery at Teck's Red Dog mine. Uchucchacua's processing volume increased as planned, meeting the company's target of 1,500 mt/day by the end of 2024, with the full-year lead metal content guidance adjusted to 3.5-4k. Newmont's Peñasquito mine resumed production in Q4 2023, with the impact of the 2023 strike eliminated, and returned to full production in Q1 2024. Teck mentioned that the YoY increase in H1 2024 was due to increased ore processing volumes and the elimination of extreme weather impacts from the same period last year. Other marginal increases in grade and processing volume included Fresnillo plc's Juanicipio project, which continued to ramp up production in 2024Q2, and Nexa's Cerro Lindo project, where ROM lead grade increased in Q1 but declined QoQ in Q2.
On the reduction side, compared to the same period in 2023, Gold Resource's mine saw lead and zinc grades decrease by 28% and 27%, respectively, with lead metal production down 56% YoY in 2024Q2 due to lower milling volumes and lower metal grades. Penoles' Capela zinc production did not recover in H1 2024 after intermittent operations due to water shortages and blockades in 2023Q3, maintaining low production levels. Sierra Metals conducted care and maintenance at the Cusi mine in September 2023 and initiated the sale process, with no production recovery in H1 2024.
Oceania Market
In H1 2024, lead concentrate production in the Australian market recorded YoY growth. MMG's Australian mine, which experienced prolonged shutdowns last year due to operational accidents and natural disasters (extreme weather, flooding, and wildfires), steadily ramped up production to normal levels in H1 2024. South 32's lead concentrate metal production increased in H1 2024 after the impact of cyclones in 2023 was eliminated. Additionally, South 32 mentioned the development of the new Hermosa project Taylor zinc-lead-silver mine, which is expected to provide attractive returns over several decades. Other incremental projects included Galena Mining's Abra mine in Western Australia, which commenced production in January 2023 with an annual capacity of 95,000 mt, ramping up production.
