With zinc prices firming at the 40 cents (US) per pound range, Teck Corp is said to be planning to reopen the Newfoundland Zinc zinc mine at Daniel’s Harbor, Nfld.
Production at the mine, 63% owned by Teck and 37% by an Amax subsidiary, was suspended in April due to low zinc prices. Since then prices have improved by about one-third and a recent U.S. mint tender for zinc at 44 cents seems to have solidified those price gains.
There also appears to be no settlement in sight at Noranda’s Valleyfield zinc refinery, disrupting supplies and putting more upward pressure on prices.
The mine is expected to be in production by Christmas at its previous capacity, about 1,500 tons per day. Reserves as of a year ago stood at 1.1 million tons averaging 7.7% zinc for annual production of more than 80 million pounds of zinc.
The company has yet to reach an agreement with the employees and is discussing some matters regarding the reopening with the Newfoundland government.
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