Pulacayo Project Feasibility Study - Apogee Silver

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report
090644-3-0000-20-IFI-100
Source: ILZSG
As with most metals, China has become the “story” for both zinc and lead demand globally.
According to International Lead and Zinc Study Group data, China currently accounts for some
40% and 45% of global annual zinc and lead metal demand, respectively, increasing since 2007,
by roughly 50% and 80%, against global demand growth of 13% and 22%, respectively, over this
same period. While such levels are not deemed sustainable longer-term, China is still expected to
be the main driver to growth in demand for both metals for several years to come.
Although Chinese mine production accounts for a large proportion of domestic supply, China
remains a significant importer of both zinc and lead, in both refined and unrefined form. In
addition, with its anticipated expanding demand profile, China can be expected to continue to
play a major role with respect to future demand.
As we look forward, global usage of both zinc and lead is expected to continue growing strongly.
By 2020, for example, CRU forecasts annual zinc metal consumption of close to 18 Million tons,
representing approximately 30% growth from current levels.
Refined Lead Consumption ('000 mt)
12000
10000
8000
6000
4000
2000
0
2007 2008 2009 2010 2011
China Europe United States India Japan Korea, Rep. Other Countries
Source: ILZSG
Figure 19.2: Global Refined Lead Consumption
However, with growth in the developed world expected to remain flat to 2%, most of this
expansion is projected to emanate from China where a compound annual growth rate of
approximately 5% is forecast over the balance of the decade (see Figure 19.3).
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