28 www.resourceworld.com
A P R I L / M A Y 2 0 1 8
Rarely has there been a more opportune
time to be involved in zinc. At US $1.48/
lb on March 12, 2018, the price of zinc has
risen over 140% from its low of US $0.66/
lb in early 2016. Some analysts and min-
ing industry officials believe the price will
go higher. The favourable price environ-
ment has been created by the long awaited
closure of several large-scale operations
(including the Century in Australia,
Lisheen in Ireland) in the past few years.
Zinc market fundamentals further
improved following cutbacks from indus-
try leaders such as Swiss commodities
trading giant Glencore AG, (which has
been withholding 400,000 tonnes, or 3%
of zinc production, from the market since
late 2015), and rising demand from a
strengthening global economy.
In the near to mid-term, National Bank
Financial analyst, Shane Nagle, says he
expects prices to remain relatively buoy-
ant given scheduled mine closures and
tightening environmental regulations in
China. This should lead to additional mine
shutdowns. He said prices should also be
supported by the global demand growth of
2.4%.
In 2018, Nagle said he expects the zinc
rally to cool somewhat, following the
gradual restart/expansion of several proj-
ects. The most notable is Glencore's Lady
Loretta Mine in Australia, and modestly
lower consumption as the Chinese econ-
omy undergoes a structural slowdown.
"We highlight that discipline from
ZINC OUTLOOK
and
PROJECT ROUNDUP
With mine closures, rising demand and higher prices, zinc is once again attracting
base metal explorers which are dusting off old projects and seeking new deposits.
by Peter Kennedy
