Teck Resources: ‘Zinc is Probably the Most Appealing Right Now’

BNamericas reported that Teck Resources Ltd. (TSX:TCK.B,NYSE:TCK) sees the zinc price continuing to rise as large mines close and no new projects replace their output.

The miner’s opinion is no doubt a familiar one to those who have been following the zinc market for the last year or so.

As quoted in the market news:

The zinc market faces a deficit as operations such as MMG’s Century mine in Australia close by the third quarter of next year, helping take 1.5Mt of the metal off the market, said Greg Waller, Teck’s VP for investor relations and strategic analysis.

‘Zinc is probably the most appealing right now. It’s a little more progressed through the cycle,’ Waller said at a Goldman Sachs mining conference in New York. ‘A series of mine closures are happening over a three-year period and some of these mines have closed already. The metals market is in deficit.’

The market also faces a lack of zinc exploration projects over the next three-four years, and miners have held off on increasing output until zinc prices climb firmly back above US$1/lb, Waller said.

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