514
L. Reemeyer
2019, Trafigura took control of Nyrstar, resulting in two metals trading companies
(it and Glencore) controlling a significant proportion of zinc mining and smelting.
In 2018, Glencore zinc mine production was 1.07 Mt, and smelter production was
0.80 Mt. Glencore is also operator of the CEZinc refinery in Canada, with capacity
of 270,000 t refined Zn. Therefore, Glencore’s overall mine and smelting capacity
is quite evenly balanced. In 2018, Teck mine production was 705,000 t, and refined
production was 303,000 t [7]. In 2018, Nyrstar zinc mine production was 139,000 t
and refined production was 1.06 Mt.
The closure of the Brunswick mine in 2013 led to conversion of the Brunswick
lead smelter from a vertically integrated internal smelter to a custom smelter treating
both Pb concentrates from mines and recycled Pb-bearing materials. Similarly, CEZinc is currently going through a transition to a more custom feeds, as zinc concentrate
supply from Glencore’s Canadian zinc mines continues to decline. In 2012, Glencore reported 506,000 t Zn in concentrate from its Canadian Zn mines (Brunswick,
Perseverance and Kidd). By 2018, production had fallen to 101,000 t [8]. Hudbay
has announced the impending closure of the Flin Flon zinc refinery in 2021 as its
Manitoba zinc mines decline in coming years [9]. In contrast, Korea Zinc is expanding its Townsville refinery in Australia given the secure long term outlook for zinc
concentrate production from mines in NW Queensland [10].
The dynamics of lead smelting are much different to zinc, as the majority of the
world’s refined lead supply is now met from the recycling of lead from lead-acid
batteries. In 2018, ILZSG [11] estimated that mined lead production was 4.7 Mt of
contained metal and refined production was 11.6 Mt metal, indicating approximately
60% of supply came from secondary sources.
Economics of Lead and Zinc Mine Production in North
America, Europe and Australia
Mines and smelters in North America, Europe and Australia follow typical negotiations for payable fractions, treatment and refining charges for lead and zinc
concentrates. Typical terms are as follows:
• Zinc concentrates are paid at the minimum of 85% of contained Zn, or 8%
deduction on grade units
• Lead concentrates are paid at minimum of 95% of contained Pb or 3% deduction
on grade units
• Silver in lead concentrates are paid at 90–95% depending on grade (higher grades
are paid at higher proportions)
• Silver in zinc concentrates are usually subject to a 90 g/t deduction and are only
paid at 65% of Ag content above that
• Gold in Pb concentrates are paid at approximately 90% for high Au concentrates,
this mainly applies to mines in Mexico
L. Reemeyer
2019, Trafigura took control of Nyrstar, resulting in two metals trading companies
(it and Glencore) controlling a significant proportion of zinc mining and smelting.
In 2018, Glencore zinc mine production was 1.07 Mt, and smelter production was
0.80 Mt. Glencore is also operator of the CEZinc refinery in Canada, with capacity
of 270,000 t refined Zn. Therefore, Glencore’s overall mine and smelting capacity
is quite evenly balanced. In 2018, Teck mine production was 705,000 t, and refined
production was 303,000 t [7]. In 2018, Nyrstar zinc mine production was 139,000 t
and refined production was 1.06 Mt.
The closure of the Brunswick mine in 2013 led to conversion of the Brunswick
lead smelter from a vertically integrated internal smelter to a custom smelter treating
both Pb concentrates from mines and recycled Pb-bearing materials. Similarly, CEZinc is currently going through a transition to a more custom feeds, as zinc concentrate
supply from Glencore’s Canadian zinc mines continues to decline. In 2012, Glencore reported 506,000 t Zn in concentrate from its Canadian Zn mines (Brunswick,
Perseverance and Kidd). By 2018, production had fallen to 101,000 t [8]. Hudbay
has announced the impending closure of the Flin Flon zinc refinery in 2021 as its
Manitoba zinc mines decline in coming years [9]. In contrast, Korea Zinc is expanding its Townsville refinery in Australia given the secure long term outlook for zinc
concentrate production from mines in NW Queensland [10].
The dynamics of lead smelting are much different to zinc, as the majority of the
world’s refined lead supply is now met from the recycling of lead from lead-acid
batteries. In 2018, ILZSG [11] estimated that mined lead production was 4.7 Mt of
contained metal and refined production was 11.6 Mt metal, indicating approximately
60% of supply came from secondary sources.
Economics of Lead and Zinc Mine Production in North
America, Europe and Australia
Mines and smelters in North America, Europe and Australia follow typical negotiations for payable fractions, treatment and refining charges for lead and zinc
concentrates. Typical terms are as follows:
• Zinc concentrates are paid at the minimum of 85% of contained Zn, or 8%
deduction on grade units
• Lead concentrates are paid at minimum of 95% of contained Pb or 3% deduction
on grade units
• Silver in lead concentrates are paid at 90–95% depending on grade (higher grades
are paid at higher proportions)
• Silver in zinc concentrates are usually subject to a 90 g/t deduction and are only
paid at 65% of Ag content above that
• Gold in Pb concentrates are paid at approximately 90% for high Au concentrates,
this mainly applies to mines in Mexico