Almost 80% Huayuan-based lead-zinc mines get approvals for restarting production
2013-12-13 14:14:35 [Print]
BEIJING (Asian Metal) 13 Dec 13 – All lead-zinc mines were ordered to halt production in Huayuan County, Hunan Province in late July 2010 for safety inspection and mines integration. Asian Metal learned that almost 80% of the local lead-zinc mines have got the approvals for operation but the mines kept low operation rates due to the sluggish zinc market and the low grade of zinc ore.
A source from a Huayuan-based zinc mine reported that after three-year mining integration, over 80% of the local 43 lead-zinc mines have got the mining licenses. “However, as the zinc prices are too low and the grade of zinc ore is only about 1-2% in most Huyuan-based mines, it’s unprofitable for us to keep operating,” said the source. “Most mines has invested over RMB10 millions at least to get the mining licenses, so they are reluctant to sell the material at the current low prices. There are only about 50% of the mines operating in the local market.”
The source said that the zinc concentrate 50%min prices about RMB9,500-10,000/metal ton in recent months, and their profit is below RMB1,000/metal ton.
A source from another local zinc mining company confirmed that over 80% of local zinc mines are allowed to restart operation in Huayuan, Hunan province, but most the zinc mines keep low operation rates due to the low zinc prices.
The source revealed that the average grade of zinc ore in the local zinc mines is only about 1-2% but the recovery rate of the zinc ore is as high as about 98% due to the low impurity in the ores.
The source revealed that most of the local zinc mines will got the approval for restarting operation next year, but operation rates and the zinc concentrate supply will be depended by the zinc prices.
Zinc Conc. TC 50% CIF China
Unit:USD/mt
China zinc concentrate producers' suspension number statistics by province by month
Unit: pcs
