Effect of Deposit Types, Mine Development and Industry …
515
• Treatment charges are set annually for zinc and lead concentrates (per t concentrate) depending on the balance of supply and demand between miners and
smelters
• Mining companies pay for transport of concentrates to customers.
Companies with integrated mines and smelters (e.g. Glencore, Teck, Boliden,
Penoles) also have opportunities to realize the value of minor metals across the
vertical lead-zinc processing chain. This can include metals such as Bi, Cd, Cu, Ge,
In and Sb. The Nyrstar Tennessee mines and Clarksville smelter is an additional pair
of integrated assets that benefit from such byproduct recovery (Ge). However, these
byproducts produce relatively low revenue compared with the main payable metals
(Zn, Pb, Ag).
The rapid rise in Chinese lead and zinc smelting capacity and since 2000 has
dramatically changed the international flows of lead and zinc concentrates. This
coupled with the decline in vertical integration of mines and smelters, especially
in Canada and Australia has led to a changing dynamic and increased volatility in
treatment charges for concentrates.
MVT deposits, which often contain relatively low head grades and byproduct
silver, have typically been swing producers during periods of low zinc prices. This
is because their margins change dramatically as zinc prices change.
Locational proximity of mines and smelters can be a strategic advantage, e.g.
Hobart smelter and Rosebery mine, Townsville smelter and Zn mines in NW Queensland, Penoles mines and Torreon smelter in Mexico, Clarksville smelter and Tennessee mines in USA, Boliden mines and smelters in Europe. Mine depletion and
smelter closures in Australia and North America have weakened these location advantages in some cases (e.g. Brunswick, Kidd in Canada, closure of Herculaneaum
smelter adjacent Missouri lead mines in USA). In the past, vertically integrated
smelters and mines were tailored to the characteristics of local concentrates, which
derived from deposit types. The global trend in lead and zinc smelting and refining has instead been towards increased economies of scale for strategically located
smelters, flexible flowsheets for a range of concentrate feeds, and technologies that
allow increased recycled material feeds (e.g. lead bearing residues, Zn-bearing EAF
dusts). This trend can be expected to continue, especially for smelters in North
America and Europe.
Outlook for Next 40 Years
In general, the pipeline of future lead-zinc projects has not been strong and lead
and zinc have attracted less exploration investment than copper and gold. There
are several large, long life SEDEX deposits in North America and Australia that
will continue to provide a supply of metal including George Fisher, Dugald River,
McArthur River and Red Dog. There are considerable Pb–Zn resources in Canada
that could be developed in Yukon, NWT and Nunavut. These include the MacMillan
515
• Treatment charges are set annually for zinc and lead concentrates (per t concentrate) depending on the balance of supply and demand between miners and
smelters
• Mining companies pay for transport of concentrates to customers.
Companies with integrated mines and smelters (e.g. Glencore, Teck, Boliden,
Penoles) also have opportunities to realize the value of minor metals across the
vertical lead-zinc processing chain. This can include metals such as Bi, Cd, Cu, Ge,
In and Sb. The Nyrstar Tennessee mines and Clarksville smelter is an additional pair
of integrated assets that benefit from such byproduct recovery (Ge). However, these
byproducts produce relatively low revenue compared with the main payable metals
(Zn, Pb, Ag).
The rapid rise in Chinese lead and zinc smelting capacity and since 2000 has
dramatically changed the international flows of lead and zinc concentrates. This
coupled with the decline in vertical integration of mines and smelters, especially
in Canada and Australia has led to a changing dynamic and increased volatility in
treatment charges for concentrates.
MVT deposits, which often contain relatively low head grades and byproduct
silver, have typically been swing producers during periods of low zinc prices. This
is because their margins change dramatically as zinc prices change.
Locational proximity of mines and smelters can be a strategic advantage, e.g.
Hobart smelter and Rosebery mine, Townsville smelter and Zn mines in NW Queensland, Penoles mines and Torreon smelter in Mexico, Clarksville smelter and Tennessee mines in USA, Boliden mines and smelters in Europe. Mine depletion and
smelter closures in Australia and North America have weakened these location advantages in some cases (e.g. Brunswick, Kidd in Canada, closure of Herculaneaum
smelter adjacent Missouri lead mines in USA). In the past, vertically integrated
smelters and mines were tailored to the characteristics of local concentrates, which
derived from deposit types. The global trend in lead and zinc smelting and refining has instead been towards increased economies of scale for strategically located
smelters, flexible flowsheets for a range of concentrate feeds, and technologies that
allow increased recycled material feeds (e.g. lead bearing residues, Zn-bearing EAF
dusts). This trend can be expected to continue, especially for smelters in North
America and Europe.
Outlook for Next 40 Years
In general, the pipeline of future lead-zinc projects has not been strong and lead
and zinc have attracted less exploration investment than copper and gold. There
are several large, long life SEDEX deposits in North America and Australia that
will continue to provide a supply of metal including George Fisher, Dugald River,
McArthur River and Red Dog. There are considerable Pb–Zn resources in Canada
that could be developed in Yukon, NWT and Nunavut. These include the MacMillan