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forecasting continued weakening in the world zinc price as new supplies come on line and stocks recover and production outpaces consumption (Metal Bulletin, 8 January 2008). Industry events in 2007 The consequences of the record high zinc price have been the rapid development of new mine capacity; new projects, expansions and the reopening of previously sub-economic mines. As a result, there are now a large number of zinc mine projects in the pipeline and the supply of zinc in concentrates is likely continue to rise through 2008. During 2007 the most significant increases in production of zinc concentrates and refined zinc were from Australia, China, Bolivia, Peru, Canada, Portugal and India. The biggest news for the year was the creation of potentially the world’s single biggest zinc producer; a merger of the smelting and alloying assets of Australia’s Zinifex Ltd, with Belgium’s Umicore Group to create Nyrstar on 31 August 2007. Nyrstar wholly owns operations in Australia (Hobart, Port Pirie), Belgium (Balen, Overpelt), France (Auby, Le Vigeant), the Netherlands (Budel) and the USA (Clarksville). It also has further joint ventures in Australia, China and France and a minority interest in Padaeng Industry Public Company Ltd, Thailand (Nyrstar, 2008). The merger of EuroZinc Mining and Lundin Mining saw the emergence of another major player on the world zinc market. Lundin Mining Corporation owned four mines, in Portugal, Sweden and Ireland; a fifth, Aljustrel (Portugal) commenced production in December 2007 giving the company a stable base in Europe. With the acquisition of a 49 per cent interest in the Ozernoe project in the Russian Federation (estimated to be the sixth largest undeveloped in the world) from IFC Metropol, Lundin now owns or has an ownership interest in four of the world’s fifteen largest zinc deposits, making it a major force in the world market. Lundin like other producers increased both production and investment in 2007, and reported that zinc concentrate production and output at its zinc processing facility at the Neves-Corvo operations in Portugal 100 US$ per tonne 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Jan-2002 May-2002 Sep-2002 Jan-2003 May-2003 Zinc Price Trend Average Zinc Cash LME Daily Official. Source: Metal Bulletin, 2008. Sep-2003 Jan-2004 May-2004 Sep-2004 Jan-2005 May-2005 Sep-2005 Jan-2006 May-2006 Sep-2006 reached designated operating levels by 24 January 2007 and that further expansion is planned (Lundin Mining, 2008). Blessed with a highly prospective geology, Australia remains a world leader in the production of zinc giving it a major influence in the world market. Leading Australian zinc producer Zinifex’s, open-pit zinc-lead, Century Mine in Queensland recorded increased zinc concentrate output during 2007 (Giglio, 2007). The Century Mine is also Australia’s largest mine and ranked second globally for zinc output. Perilya Ltd is progressing commissioning of their Potosi mine at Broken Hill (Perilya Ltd, 2007). Jabiru Metals Ltd also became Australia’s latest zinc producer commissioning the Jaguar zinc-copper project, in Western Australia and making delivery of the first saleable zinc concentrate to Geraldton Port in July 2007. Jaguar is a VMS-style deposit with a grade which is in the top five per cent of VMS deposits worldwide (Jabiru Metals, 2007). Teck Cominico Ltd also restarted production at Lennard Shelf in April 2007 (Giglio, 2007). China remained a controlling power on the world zinc market and refined zinc production increased throughout 2007, fuelled by both growing international and domestic demand. China now consumes 20 per cent of the world’s zinc supply (Hinde and Lovesey, 2007). Driven by high zinc prices investment in zinc mining in China increased during 2005 and 2006. Construction of new zinc mines added some 1.0 million tonnes of mine-production capacity, and in 2006, 0.7 million tonnes of smelting capacity. Despite this, China remains a net importer of zinc concentrate and imports increased by 46 per cent during 2006 (Mining Journal, 18 May 2007). China’s Sinosteel Pty Ltd entered into an off-take agreement with Australia’s Fox Resources Ltd for all zinc concentrate sales from the West Whundo copper-zinc project. The agreement is for an initial 12 000 tonnes of zinc concentrate (Mining Journal, 11 May 2007). Chinese mining companies also continued to invest overseas, and China’s Zijin Mining purchased the Kyzyl-Tashtygskoe lead-zinc mine in Russia, which has lead-zinc reserves of 1.5 million tonnes and an ore grade of about 10 per cent (Metal Bulletin, 20 July 2007). The Chinese Government cancelled the tax refund on exports of refined zinc and on 1 January introduced an export tariff of Jan-2007 May-2007 Sep-2007 Jan-2008
five per cent. The tax refund on zinc alloys was also cut from eight to five per cent. A Chinese Government directive that will see the cessation of subsidies to the zinc smelters in the form of reduced electricity prices has also been announced (Metal Bulletin, 22 October 2007). Despite this, there was continued increase in Chinese exports of refined zinc products, fuelled by the expansion in the galvanising sector and by October 2007, causing speculation about further price decreases and a world surplus in 2008 (Meir, 2008). The year 2007 also saw foreign investment in Chinese mining operations. Currently Griffin Mining has the only new foreignowned and operated mine and processing plant in China at Caijiaying, which currently produces 500 000 tonnes per year of zinc concentrate with further increases planned for 2008 (Griffin Mining, 2008). In an innovative move, Australia’s Penfold Ltd invested as a minority partner in China’s Western Mining Co., operator of the country’s largest lead and zinc mine. Western’s Xitieshan mine has a production capacity of over 1.5 Mt/y of lead/zinc ores, produces 160 000 tonnes per year of metals, and is the biggest independent mine in China (Chadwick and Higgins, 2007). After the separation from its smelting and alloying operations, Zinifex Ltd continues as a major player on the world market in mining. It has now signed a Heads of Agreement with Toronto-listed Asia Now Resources Corp. to form an alliance for mineral exploration in China (Mining Journal, 09 March 2007). Bolivia saw exports of zinc concentrate rise with the commissioning, in September 2007, of the San Cristobal mine. It is jointly owned by Apex Silver and the Sumitomo Corporation and considered to be one of the world’s largest silver-zinc-lead development projects. The first shipment of concentrates [to Asian Smelters] was reported on 18 October 2007 (Apex Silver Mines Ltd, 2007). Increased output of zinc concentrate from Peru was principally the result of the commissioning of Gold Hawk Resources Inc.’s Coricancha Mine and processing facility, with the first lead and zinc concentrates produced in February 2007 (Gold Hawk Resources, 2007), and Minera Milpo’s Cerro Lindo operation in July (Metal Bulletin, 21 July 2007). Fortuna Silver Mines Inc. commenced production of zinc concentrates from Caylloma silver-lead-zinc mine, Peru, in November 2006 (Fortuna Silver Mines Inc, 2006). In Canada the Acadian Mining Corporation commenced production at Scotia Mine, an open-pit zinc-lead mine at Gays River, Nova Scotia in May 2007. The mine is expected to produce 30 000 tonnes per year of high grade zinc concentrate (Acadian Mining Corp, 2008). Breakwater Resources Ltd’s Langlois mine in north-west Quebec also commenced commercial production on 1 July 2007 (Breakwater Resources Ltd, 2007). Further mines are also set to open, and the Yukon Zinc Corp expected to commence production at Wolverine silver-zinc project in 2009 with concentrate being shipped to Asia for processing (Higgins, 2007). Overland Resources Ltd also secured a controlling interest in the Andrew Base Metal Project in January 2007 and is now endeavoring to fast-track the now proven high grade zinc deposit to production (Overland Resources Ltd, 2007). Despite increased mining and production, the US is increasingly reliant on imported raw and processed zinc, with a net import reliance of 76 per cent in 2006. In the same year, 80 per cent of the US mine output came from a single mine, Red Dog Mine in Alaska, which is operated by the world’s second-largest zinc miner, Teck Comnico Ltd. In 2007, US mining saw the reopening of previously sub-economic mines in Tennessee and New York State (Mining Journal, 13 April 2007). Global refined zinc metal production is also set to increase in 2008. The largest rises will be in China and India, where Hindustan Zinc Ltd commissioned a second 170 000 tonnes/year hydrometallurgical zinc smelter (Hydro II) at Chanderiya in 2007 (Hindustan Zinc Ltd, 2008) Finally, with both increasing demands and prices during 2006 and the first half of 2007, the focus on recycling increased. Brass and galvanised steel scrap are the largest contributors to recycling. The Tasmanian Government has granted approval for Sydney-based Intec Hellyer Metals Pty Ltd to build a plant at their Hellyer mill in the town of Burnie to refine zinc from electric arc furnace dust. The company hopes to use the process elsewhere in the near future (RecyclingBizz.com, 2008). Selected bibliography AMERICAN ZINC ASSOCIATION. 2008. The production of zinc. [cited January 2008] Available from http://www.zinc.org/production.html APEX SILVER MINES LTD. 2007. Apex Silver Reports First Shipments of Concentrate from San Cristobal, Press Release 22 October 2007. [cited January 2008] Available from http://www.apexsilver.com ARCADIAN MINING CORPORATION. 2008. [cited January 2008] Available from http://www.acadiangold.ca/ BREAKWATER RESOURCES LTD. 2007. Breakwater Declares Commercial <strong>Production</strong> at Langlois. News Release 4 July 2007. [cited January 2008] Available from http://www.breakwater.ca/pdf/ACF20A.pdf CHADWICK, J AND HIGGINS, S. 2007. Enter the Dragon. International Mining. February 2007, p58–61. COHEN, D. 2007. Earth audit. New Scientist, 26 May 2007, p34–41. FORTUNA SILVER MINES INC. 2006. Fortuna ships first concentrates from Caylloma Silver Mine, Peru News Release 07 November 2006. [cited January 2008] Available from http://www.fortunasilver.com/s/NewsReleases.asp?ReportID= 199006&_Title=Fortuna-ships-first-concentrates-from- Caylloma-Silver-Mine-Peru. GIGLIO, M. 2007. Zinc: The heat is off. Mining Journal, 12 October 2007, p21–25. GOLD HAWK RESOURCES INC. 2007. Coricancha Mine start up. Press Release, 20 February 2007. [cited January 2008] Available from http://www.goldhawkresources.com/ en/pdfs/news/2007_02_20_ghpres52.pdf. GRIFFIN MINING. 2008. [cited January 2008] Available from http://www.griffinmining.com/gm_intro.asp HIGGINS, S. 2007. Galvanised for action. International Mining, January 2007, p14–28. HINDE, C AND LOVESEY, M. 2007. Different expectations. Mining Journal, 7 September 2007, p14–17. HINDUSTAN ZINC LTD. 2007. [cited January 2008] Available from http://www.hzlindia.com/projects.asp INTERNATIONAL LEAD AND ZINC STUDY GROUP (ILZSG). 2008. [cited January 2008] Available from http://www.ilzsg.org/ INTERNATIONAL MINING (ONLINE). 2008. Base metals physical premiums stabilise, but at levels that indicate further 101
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World Mineral Production 2002-2006
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© NERC 2008 all rights reserved Fi
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CONTENTS Commodity Index Alumina 2
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STATISTICAL TABLES
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US$/tonne US$/tonne 700 600 500 400
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Production of bauxite tonnes Countr
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Production of primary aluminium ton
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Production of asbestos tonnes Count
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Production of bentonite and fuller'
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Production of bentonite and fuller'
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Production of bromine kilograms Cou
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COAL Characteristics Coal is a comb
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to government approvals, would incr
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Production of coal tonnes Country 2
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Mine production of cobalt tonnes (m
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US$/tonne 10000 9000 8000 7000 6000
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Mine production of copper tonnes (m
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Production of refined copper tonnes
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Production of diatomite tonnes Coun
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FLUORSPAR Characteristics Fluorspar
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GOLD Characteristics Gold is a soft
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MERCER, D. 2007. BHP Billiton boost
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Production of graphite tonnes Count
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Production of gypsum tonnes Country
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Cents per tonne Fe unit f.o.b 90 80
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Production of pig iron tonnes Count
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Production of crude steel tonnes Co
Page 57 and 58: Production of ferro-alloys tonnes C
Page 59 and 60: Production of kaolin tonnes Country
Page 61 and 62: LEAD Characteristics Lead is a dens
Page 63 and 64: America has not been without contro
Page 65 and 66: Production of refined lead tonnes C
Page 67 and 68: Production of magnesite tonnes Coun
Page 69 and 70: Production of mercury kilograms Cou
Page 71 and 72: Mine production of molybdenum tonne
Page 73 and 74: US$/tonne 60000 50000 40000 30000 2
Page 75 and 76: RIO TINTO. 2007. Rio Tinto to enter
Page 77 and 78: Production of perlite tonnes Countr
Page 79 and 80: Production of crude petroleum tonne
Page 81 and 82: Production of natural gas million m
Page 83 and 84: Mine production of platinum group m
Page 85 and 86: Production of salt tonnes Country 2
Page 87 and 88: Production of salt tonnes Country 2
Page 89 and 90: Mine production of silver kilograms
Page 91 and 92: Production of sulphur and pyrites t
Page 93 and 94: Production of sulphur and pyrites t
Page 95 and 96: Production of talc tonnes Country 2
Page 97 and 98: Mine production of tin tonnes (meta
Page 99 and 100: (TG100; 12 x 120 mm) Metal Bulletin
Page 101 and 102: Production of titanium minerals ton
Page 103 and 104: US$/lb 160 140 120 100 80 60 40 20
Page 105 and 106: Mine production of uranium tonnes (
Page 107: ZINC Characteristics Zinc is the 23
Page 111 and 112: Mine production of zinc tonnes (met
Page 114: Price £30
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