MMG’s Dugald River to Miss Planned Production Start Date

Reuters reported that MMG Ltd.’s (HKEX:1208) Dugald River lode, which was supposed to start producing zinc in late 2015, will miss its planned start-up date.

That’s a problem considering the plan was for it to partially replace output from the company’s nearby Century mine, which is set to run out of zinc midway through 2015. However, such a supply crunch could be bullish for zinc prices

As quoted in the market news:

‘If they are now saying it will be longer before Dugald River hits the market, it could make for a tight supply situation,’ a metals trader in Sydney said.

MMG on Thursday said aspects of the Dugald River mine appear more challenging than prior assumptions, with poor ground conditions making the initial mine plan difficult to meet.

‘MMG will not achieve the previously announced schedule of a first concentrate shipment in late 2015,’ it said, without giving an estimate for a start date.

Click here to read the full Reuters report.