Global mined zinc production is expected to continue ramping up over the coming years as elevated prices encourage miners to restart idled capacity and start production at key new mines, Fitch Solutions Macro Research said this week.
In its ‘Outlook for Zinc Mining’, published on Tuesday, Fitch Solutions Macro Research said that, while some capacity had been taken off line during 2015 and 2016, owing to permanent mine closures, the return of some stalled capacity and new projects in key countries would drive growth over the coming quarters.
Fitch Solutions Macro Research forecast that global zinc mine production will increase by 1.6% year-on-year to 13.2-million tonnes this year, before increasing to 15.7-million tonnes by 2028, averaging 1.9% growth a year.
In one of the key markets, namely China, zinc production is anticipated to stagnate owing to ore grades and increasingly stringent environmental regulations. According to the outlook document, the conservation of minerals and increasing consolidation of mining industries outlined in China’s thirteenth five-year plan will weigh on the country’s zinc output.
Additionally, the strong support for State-owned enterprises (SOEs) in the plan will ensure that China’s zinc industry remains dominated by SOEs, with an increasing consolidation of smaller miners.
For the rest of this article: https://www.miningweekly.com/article/global-zinc-production-to-rise-on-the-back-of-elevated-prices-2019-10-01