2025 Zinc Chronicle: Cultivating Internal Strength and Expanding External Outreach to Open a New Chapter for Zinc [SMM Analysis]

SMM January 29:

Domestic Chronicles

I. Continuous Enhancement of Zinc Concentrate Resource Security

1. Strategic Mergers and Acquisitions Accelerate Resource Integration, Zinc Concentrate Capacity Release

In January 2025, JCC Group acquired 29.8% equity of Hezhang Dingshengxin through a combination of "equity acquisition and capital increase and share expansion," achieving indirect control of the Zhugongtang lead-zinc mine.

In September 2025, the equity cooperation signing ceremony between Shandong Zhaojin Group and Mengzi Mining and Metallurgy Co., Ltd., along with the production resumption ceremony of the Bainiuchang mine, was held in Mengzi City, Honghe Hani and Yi Autonomous Prefecture. The Bainiuchang mine contains non-ferrous metals and precious metals such as silver, lead, zinc, copper, and tin. After resuming production, the mine is expected to achieve an ore output of 250,000-300,000 mt in H2 this year, with comprehensive output value increasing by 25%.

In November 2025, Puding County Derong Mining Co., Ltd., a wholly-owned subsidiary of Yunnan Luoping Zinc & Electricity Co., Ltd., obtained a new Work Safety License issued by the Guizhou Provincial Department of Emergency Management for the Jinpo lead-zinc mine. The license is valid from November 3, 2025, to November 2, 2028, permitting underground mining of the lead-zinc mine at a rate of 200,000 mt/year.

In December 2025, according to an announcement by Western Mining Co., Ltd., its wholly-owned subsidiary, Golmud Xikuang Resources Development Co., Ltd., recently obtained the People's Republic of China Mining License issued by the Qinghai Provincial Department of Natural Resources. The mining area possesses iron polymetallic ore resources of 20.07 million mt, associated copper metal content of 76,100 mt, zinc metal content of 60,400 mt, and gold metal content of 2.86 mt.

2. Industry Standards: Upgraded Standards Lead High-Quality Development

In March 2025, the new version of "GB/T 20424-2025 Specification for Limit of Harmful Elements in Heavy Non-ferrous Metal Concentrates" was implemented, adding limits for thallium, fluorine, chlorine, etc. (thallium in zinc concentrates ≤0.002%), promoting the green transformation of domestic mines and improving the quality of imported ore.

II. Smelting: Technological Breakthroughs and Capacity Release

1. Industrialization of Disruptive Technologies

In May 2025, the "Oxygen-Enriched Side-Blown Oxidative Smelting – Molten Direct Zinc Reduction Technology," jointly developed by Henan Jinli Gold and Lead Group and ENFI, passed review and signed an industrialisation demonstration project. It reduces energy consumption by approximately 30% and pollutant emissions by over 40%, solving the solid waste problem of hydrometallurgical processes; a supporting 150,000 mt/year high-purity zinc project commenced construction in July 2025.

2. Zinc Smelting Capacity Expansion Continues

In 2025, domestic zinc smelting capacity expansion continued, with major projects including the new 150,000 mt zinc-based materials green intelligent manufacturing project by Jiyuan Wanyang Smelting (Group) Co., Ltd., the relocation and reconstruction of Yunnan Copper Zinc Industry, and the integrated mining, beneficiation, and smelting project for Phase I of Xinjiang Huoshaoyun.

3. Green and Low-Carbon Transformation Accelerates

In March 2025, the industry advanced the optimization of DC power consumption per ton in zinc electrolysis. Chengzhou Zinc Smelting achieved a 30 kWh/t reduction in DC power consumption through technological upgrades, increasing capacity by 3.7% and reducing DC power consumption per ton by 3.2%.

In June 2025, Southwest Energy & Mineral innovated with a pyrometallurgical electric furnace process, adopting independently developed zinc smelting technology. Four zinc smelting electric furnaces and supporting distillation systems were built, achieving an annual capacity of 50,000 mt. By optimizing processes, introducing intelligent control systems, and waste heat recovery technology, energy consumption was reduced by over 30%, setting an example for green transformation in traditional zinc smelting.

III. Policies: Stabilizing Growth and Green Transition

1. Top-Level Design Strengthens Industry Guidance

In August 2025, MIIT and seven other departments issued the "Work Plan for Stabilizing Growth in the Nonferrous Metals Industry (2025-2026)," targeting an average annual production growth of about 1.5% for ten nonferrous metals, with recycled metal production exceeding 20 million mt, and supporting green, efficient development of resources like zinc and breakthroughs in high-end materials.

2. Resource Security and Environmental Protection Upgrades

In June 2025, a new round of mineral exploration breakthroughs advanced, adding three large zinc mine sites in Xinjiang, Tibet, etc., optimizing mining rights systems, and supporting comprehensive utilization of low-grade and associated zinc resources. The "AI + Nonferrous Metals" initiative promoted smart factory construction by zinc smelters to enhance efficiency and environmental protection controls.

IV. Downstream: New Export Regulations Encountered

In July 2025, the Ministry of Commerce and General Administration of Customs announced No. 17, cracking down on "forging or purchasing customs clearance documents from other import and export firms." In December 2025, they issued No. 79, implementing export license management for certain steel products, requiring foreign trade operators to apply for licenses with export contracts and producer quality inspection certificates.

Overseas Events

I. Mine End: Overseas Capacity Release and Supply Chain Adjustments

1. Significant Overseas Mine Increases

In April 2025, Boliden announced the full completion of approvals for acquiring the Neves-Corvo and Zinkgruvan mines. Originally under Lundin Mining, these two lead-zinc mines produced 192,000 mt in metal content of zinc concentrates and 37,400 mt in metal content of lead concentrates in 2024. For 2025, the total guided production for zinc and lead concentrates from these mines is projected at 195,000 mt and 37,000 mt in metal content, respectively.

In June 2025, Australian miner Polymetals Resources Ltd announced that its Endeavor silver-zinc mine in the Cobar region of New South Wales had achieved commercial production.

In July 2025, Glencore announced on Tuesday its decision to sell its Lady Loretta zinc mine and related land to Austral Resources.

In November 2025, the Algerian National Mining Group (SONAREM) held a coordination meeting, emphasizing that the Béjaïa zinc-lead mine project must commence production as scheduled. The project holds significant economic and social value, with planned annual production of 170,000 mt of zinc concentrates and 30,000 mt of lead concentrates.

2. Supply Chain Diversification Layout

In December 2025, Korea Zinc planned to invest $7.4 billion in building a plant in the US. In December, it received support from a South Korean court, accelerating the "de-Sinicization" of the critical mineral supply chain and enhancing zinc smelting capacity security in North America.

In December 2025, Nyrstar disclosed that it had reached an agreement with Korea Zinc regarding related assets in Tennessee, US, involving the East Tennessee and Middle Tennessee mine complexes, as well as the Clarksville zinc smelter currently owned or operated by Nyrstar.

II. Smelting: Green, Efficient, and Capacity Expansion

1. Continued Capacity Expansion in Smelting

In March 2025, the Odda zinc smelter was completing the final phase of an expansion project, which increased annual capacity from 200,000 mt to 350,000 mt of zinc ingots while enhancing by-product extraction capability.

In June 2025, Hindustan Zinc (HZL), India's largest refined zinc producer, announced approval for a capacity expansion project valued at 120 billion rupees (approximately $1.39 billion). The company will construct a new metals complex with an annual production capacity of 250,000 mt near its existing zinc smelter in Rajasthan, expected to be completed within 36 months.

In December 2025, according to an announcement on KOREA ZINC's official website, the company plans to participate in the US strategic mineral supply chain and strengthen future growth drivers by building an integrated non-ferrous metals smelter in the US. The project will be advanced through its US subsidiary, Crucible Metals, LLC, aiming to establish a composite non-ferrous metals smelter that integrally produces and recycles major non-ferrous metals such as zinc, lead, and copper; precious metals like gold and silver; and strategic minerals including antimony, germanium, and gallium. The smelter will be constructed in phases (2027–2029) and commence commercial operations progressively, targeting an annual zinc capacity of 300,000 mt.

2. Some Smelters Undergo Maintenance, Affecting Short-Term Capacity

In February 2025, the Seokpo smelter, owned by South Korean refined zinc producer Young Poong, was ordered to suspend operations on February 26 due to unauthorized discharge of polluted wastewater, with the South Korean Supreme Court ruling a 58-day shutdown. The Seokpo smelter has an annual capacity of approximately 400,000 mt, with zinc ingot production in 2024 reaching around 290,000 mt.

In March 2025, Nyrstar announced that its Hobart zinc smelter in Australia would reduce production by about 25% starting April 2025. The Hobart smelter has an annual capacity of 280,000 mt and an annual production of approximately 250,000 mt of SHG zinc ingot.

3. Technological Innovation and Low-Carbon Transformation

In 2025, international zinc smelters accelerated the adoption of technologies such as oxygen-enriched smelting and direct reduction. Companies including Boliden and Korea Zinc optimized processes to reduce energy consumption and carbon emissions, driving the industry's green transition.

III. Policies: Environmental Standards and Industrial Support

1. EU Environmental and Industrial Policies

In June 2025, the EU advanced regulations on batteries and critical raw materials, raising requirements for the recycling and reuse of zinc in the new energy sector to promote green and low-carbon transformation of the zinc industry chain.

2. US Supply Chain and Subsidy Policies

In December 2025, the US passed subsidies under the Inflation Reduction Act (IRA) to support domestic zinc smelting and processing projects, attracting investments from companies such as Korea Zinc and enhancing the resilience of the North American zinc supply chain.

IV. Key Periods in Global Markets and Trade

Warehouse and Inventory Changes

In January 2025, the London Metal Exchange (LME) officially approved Hong Kong as an authorized delivery location within its global warehouse network, adding it to the existing network spanning 32 locations worldwide. On April 15, 2025, the LME announced the first list of approved storage facilities, involving four facilities operated by three companies. These facilities began operations in mid-July 2025 and can store seven metals: aluminum, copper, zinc, lead, tin, nickel, and aluminum alloys. Due to strong market demand, the number of warehouses increased from the initial four to at least eight by August.

In November 2025, LME inventories once fell below 35,000 mt, with low inventory levels providing support for zinc prices.

(The above information is based on market data and comprehensive assessments by the SMM research team. The information provided is for reference only. This article does not constitute direct investment advice. Clients should exercise caution and not use this information as a substitute for independent judgment. Any decisions made by clients are unrelated to SMM.)