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Strategies & Market Trends : Commodities - The Coming Bull Market

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To: craig crawford who wrote (841)10/10/2001 7:05:48 PM
From: craig crawford  Read Replies (1) of 1643
 
Zinc
roskill.co.uk

Zinc producers increase capacity
The zinc industry has experienced significant expansion in recent years, with new projects increasing total world capacity for both mine and zinc metal production. Significant capacity increases have included the opening of Sun Metals' Townsville smelter/refinery in Queensland, Australia, and Anglo American's Lisheen mine in County Clare, Ireland. In 1999, Pasminco commissioned the 0.52Mtpy Century mine in Australia, which, when it reaches design capacity, will rank with Red Dog in the USA as one of the two largest zinc mines in the world.

Demand for zinc in brass and bronze increased by an annual average of almost 5% between 1993 and 1998, ensuring a secure and growing market for zinc. However, the galvanising of steel is the principal application, accounting for approximately 44% of world zinc demand. Furthermore, it is the relatively widespread increase in demand for galvanised steel that has fuelled growth in the zinc industry. World consumption of refined zinc metal increased by about 7% in 1999 to 8.4Mt, and was expected to reach 8.7Mt in 2000; this represents a 31% increase over consumption in 1993.

Demand for galvanised steel, despite some slowdown in the automotive sector, will continue to stimulate growth in the zinc industry. The USA and China are expected to be the major growth areas, and demand for zinc is expected to grow by an average of 3.4%py to over 10Mt by 2005, based on 1998 consumption.

REPORT HIGHLIGHTS

World annual mine production of zinc increased from 7Mtpy to 8Mtpy during the 1990s. China was the principal zinc mining country in 2000, accounting for 18% of world output.
Zinc metal production increased by 25% during the 1990s to reach 8.4Mt in 1999. Preliminary data for 2000 indicate world output of 8.8Mt, a 5.3% increase over 1999.
Some 80% of zinc metal is produced electrolytically after roasting the ore to produce a calcine, followed by leaching with sulphuric acid. A wide variety of other process methods are used for production of zinc from both primary and secondary raw materials.
The use of zinc and zinc chemical anodes in batteries is a minor use for zinc in tonnage terms, but is expected to show significant percentage growth with growing demand for zinc-air, alkaline manganese and other batteries for mobile communications equipment.
There has been increasing interest in the hydrometallurgical treatment of oxide/silicate ores, with new projects such as the Skorpion open cast mine in Namibia, and the Shaimerden operation in Kazakhstan. If these projects prove to have the low costs that are claimed, they could start to compete seriously with conventional sulphide operations.
Australia dominates world trade in zinc concentrates. In 1999, Australia was the largest exporting country, accounting for 21% of the total 4Mt of zinc exported in concentrates.
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