In 1998, an estimated $236 million was budgeted for worldwide zinc exploration, a 13% decline from the year before. Although exploration budgets are being cut significantly again this year, the relative stability of the zinc market has encouraged continued development of such prospects worldwide, according to a report by Halifax, N.S.-based Metals Economics Group (MEG).
While most of the zinc resources under development are in Australia, North America and South Africa, the market is also benefitting from privatizations in South America and more open policies towards foreign investment in countries of the former Soviet Union.
According MEG, 72 late-stage primary zinc exploration projects reported activity during the past year. Of these, 15 projects, representing almost 17 million tonnes of contained zinc, were put on hold, mainly because of low base metals prices or the inability to secure financing.
Of the 57 currently active primary zinc development projects, 45 are in reserves development, five are undergoing feasibility work and seven are under construction.
Analysts expect that production increases at several existing mines will boost annual zinc capacity by 122,600 tonnes.
At Cominco’s’ Red Dog mine in Alaska, annual production is expected to rise by 55,000 tonnes, to 500,000 tonnes, as a result of an upgrade in 1998. The Cannington mine of Broken Hill Proprietary in Australia is increasing throughput to 1.5 million tonnes per year, which would result in 1999 production of 50,000 tonnes of zinc.
Four other mines with significant zinc output are expanding their annual zinc production, including: the San Vincente in Peru, to 74,000 tonnes; the Uchaly mine in Russia, to 78,500 tonnes; the Chifeng Bayannur mine in China, to 40,000 tonnes; and the Maranda mine in South Africa, to 14,300 tonnes.
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