Chronicle of Zinc Events in 2025 [SMM Analysis]

SMM January 29 News:

Domestic Chronicles

I. Continuous Enhancement of Zinc Concentrate Resource Security

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

In January 2025, JCC Group acquired a 29.8% stake in Hezhang Dingshengxin through a combination of equity acquisition and capital increase, achieving indirect control of the Zhugongtang Lead-Zinc Mine.

In September 2025, a signing ceremony for the equity cooperation between Shandong Zhaojin Group and Mengzi Mining and Metallurgy Co., Ltd., along with a production resumption ceremony for the Bainiuchang Mine, was held in Mengzi City, Honghe Hani and Yi Autonomous Prefecture. The Bainiuchang Mine contains non-ferrous and precious metals including 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 for its Jinpo Lead-Zinc Mine issued by the Guizhou Provincial Department of Emergency Management. The license is valid from November 3, 2025, to November 2, 2028, permitting underground mining of the lead-zinc ore 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, containing 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 Limit Specification for Hazardous 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 China ENFI Engineering Co., Ltd., passed review and a contract was signed for an industrialization demonstration project. The technology reduces energy consumption by approximately 30%, cuts pollutant emissions by over 40%, and solves the solid waste problem associated with hydrometallurgical processes. A supporting 150,000 mt/year high-purity zinc project commenced construction in July 2025.

2. Continued Expansion of Zinc Smelting Capacity

In 2025, the expansion of domestic zinc smelting capacity continued. Major projects included 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 Phase I mining, beneficiation, and smelting integration project of Xinjiang Huoshaoyun.

3. Acceleration of Green and Low-Carbon Transformation

In March 2025, the industry promoted the optimization of DC power consumption per unit for electrolytic zinc. Chengzhou Zinc Smelting achieved a reduction of 30 kWh/t in DC power consumption per unit through technological transformation, increasing capacity by 3.7% and reducing DC power consumption per unit by 3.2%.

In June 2025, Southwest Energy & Mineral Zinc Industry innovated pyrometallurgical electric furnace technology by adopting its independently developed pyrometallurgical electric furnace zinc smelting process. It built four zinc smelting electric furnaces and supporting rectification systems, achieving an annual capacity of 50,000 mt. By optimizing the process flow, introducing intelligent control systems, and waste heat recovery technology, it achieved an energy consumption reduction of over 30%, providing a model for the green transformation of the traditional zinc smelting industry.

III. Policies: Stabilizing Growth and Green Transformation

1. Top-Level Design Strengthens Industry Direction

In August 2025, the MIIT and seven other departments issued the "Work Plan for Stabilizing Growth in the Non-Ferrous Metals Industry (2025-2026)", proposing an average annual production growth of about 1.5% for ten non-ferrous metals, a breakthrough of 20 million mt in the production of recycled metals, and support for the green and 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 the strategic action for breakthrough in mineral exploration advanced, adding three new large zinc mineral deposits in Xinjiang, Tibet, and other areas. It optimized the mining rights transfer system and supported the comprehensive utilization of low-grade and associated zinc ore resources. The "AI + Non-ferrous Metals" initiative was promoted, encouraging zinc smelting enterprises to build smart factories to enhance production efficiency and environmental protection-related controls.

IV. Downstream: New Regulations for Exports

In July 2025, Announcement No. 17 issued by the Ministry of Commerce and the General Administration of Customs targeted "forging or purchasing customs clearance documents from other import and export firms". In December 2025, Announcement No. 79 of 2025 issued by the Ministry of Commerce and the General Administration of Customs implemented export license management for some steel products, requiring foreign trade operators exporting the aforementioned goods to apply for an export license based on the goods export contract and a product quality inspection certificate issued by the producer. Overseas Events

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

1. Significant Increase in Overseas Mines

In April 2025, Boliden announced the full completion of approvals for the acquisition of the Neves-Corvo and Zinkgruvan mines. These two lead-zinc mines were originally owned by Lundin Mining, producing 192,000 mt in metal content of zinc concentrates and 37,400 mt in metal content of lead concentrates in 2024. The total guided production for zinc and lead concentrates from the two mines in 2025 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 located in the Cobar region of New South Wales had achieved commercial production.

In July 2025, Glencore announced on Tuesday its decision to sell the 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 Bejaia zinc-lead 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. Diversified Supply Chain Layout

In December 2025, Korea Zinc planned to invest $7.4 billion in building a plant in the US. The plan received support from a South Korean court in December, accelerating the "de-Sinicization" of critical mineral supply chains 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, USA, 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 Efficiency and Capacity Expansion

1. Continued Smelting Capacity Expansion

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

In June 2025, India's largest refined zinc producer, Hindustan Zinc (HZL), announced approval for a capacity expansion project worth 120 billion rupees (approximately $1.39 billion). The company will build a new metals complex with an annual 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 establishing an integrated non-ferrous metal smelter in the US. The project is to be advanced through its US subsidiary Crucible Metals, LLC, with the goal of building a comprehensive non-ferrous metal smelter that produces and recycles major non-ferrous metals such as zinc, lead, and copper, precious metals including gold and silver, and strategic minerals such as antimony, germanium, and gallium. The smelter will be constructed in phases (2027–2029) and commence commercial operations with staged annual production targets, involving a zinc capacity of 300,000 mt.

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

In February 2025, South Korea's refined zinc producer Young Poong's Seokpo smelter was ordered to suspend operations for 58 days by the South Korean Supreme Court due to unauthorized discharge of polluted wastewater, effective February 26. The Seokpo smelter has an annual capacity of approximately 400,000 mt, with zinc ingot production in 2024 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 produces approximately 250,000 mt of SHG zinc ingot per year.

3. Technological Innovation and Low-Carbon Transformation

In 2025, international zinc smelting enterprises 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, promoting the industry's green transition.

III. Policies: Environmental Standards and Industrial Support

1. EU Environmental and Industrial Policies

In June 2025, the EU advanced the Battery and Critical Raw Materials Regulations, raising requirements for the recycling and reuse rates of zinc in the new energy sector, thereby driving the green and low-carbon transformation of the zinc industry chain.

2. US Supply Chain and Subsidy Policies

In December 2025, the US passed subsidies related to 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 zinc supply chain in North America.

IV. Key Periods in the Global Market and TradeWarehouse and Inventory Changes

In January 2025, the London Metal Exchange (LME) officially approved Hong Kong as an approved delivery point within its global warehouse network, incorporating it into the existing storage network spanning 32 locations worldwide. On April 15, 2025, the LME announced the first list of specific storage facilities approved for operation, involving a total of four storage facilities from three operators. These facilities officially commenced operations in mid-July 2025 and are capable of storing seven types of metals: aluminum, copper, zinc, lead, tin, nickel, and aluminum alloy. Due to strong market demand, the number of warehouses increased from the initial four to at least eight by August.

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