Curious about zinc production? According to the US Geological Survey, China remained the top producer in 2017 by a long shot.
At the beginning of 2017, many analysts thought zinc would continue to rise, and they were proven right. The metal hit a 10-year high last August, buoying both zinc juniors and producers, and then hit another decade high in Q1 2018.
Despite a recent pullback, the broad consensus is that zinc prices will continue to increase in the next couple of years. Given that situation, it’s interesting to look at how zinc supply is doing. Here’s a brief overview of top zinc production in the world by country for 2017, as per the most recent data from the US Geological Survey.
Mine production: 5.1 million MT
In 2017, China achieved top zinc production in the world by a long shot, putting out 5.1 million MT of the metal; that’s slightly up from the 4.8 million MT it produced in 2016.
Interestingly, the Asian nation is not only the world’s largest zinc producer, but also a significant consumer of the metal. In fact, China is a big part of why zinc fared so well last year — growing demand for the metal was supported by strong property sales in the country and by the Chinese government’s push for more infrastructure projects.
Mine production: 1.4 million MT
Zinc production in Peru increased by 70,000 MT in 2017. The country produced 1.4 million MT compared to 2016’s 1.33 million MT, but made it to second place due to continued output declines in Australia.
Modern zinc refining began in Peru in the 1920s, and from the 1970s to the 1990s the country saw an increase in private international investors hoping to up the country’s zinc production. Currently, a big name in Peruvian zinc production is Trevali Mining (TSX:TV), which is producing zinc and lead–silver concentrates at its Santander mine in the country.
Mine production: 1.3 million MT
India’s zinc production nearly doubled year-over-year; it put out 1.3 million MT of the metal in 2017 compared to 682,000 MT the year prior. The country is home to one of the world’s top zinc mines — the Rampura Agucha mine in Rajasthan, which has an ore production capacity of 6.15 million MT per year.
India’s increase is thought to be the result of the completion of the Rampura Agucha underground mine, according to the US Geological Survey.
Mine production: 1 million MT
Australia produced 1 million MT of zinc in 2017, a small comeback towards 2016’s 1.6 million MT.
The significant drop in recent years happened because in October 2015 mining concluded at MMG’s (HKEX:1208) Queensland-based Century mine. While MMG had originally hoped that output from its Dugald River project would fill the gap left by Century, its production has not quite measured up.
Interestingly, since Century’s closure, New Century Resources (ASX:NCZ) has stepped forward to reopen the Century mine. The company is moving forward quickly at the asset.
5. United States
Mine production: 730,000 MT
The US produced 730,000 MT of zinc in 2017, a decrease from 2016’s 805,000 MT. According to the US Geological Survey, zinc was mined in five states at 14 mines operated by four companies last year.
Mine production in the US is thought to have declined because of an ongoing strike at the Lucky Friday mine in Idaho, as well as lower output from the Red Dog mine in Alaska. Production resumed at the Middle Tennessee mines, and the Clarksville smelter in Tennessee also increased production, bringing refined zinc production up by 6 percent.
Mine production: 680,000 MT
Mexico’s zinc output increased by 10,000 MT from 2016 to 2017. According to MBendi Information Services, while Grupo Mexico (OTCMKTS:GMBXF) is the country’s biggest mining company, Industrias Penoles (BMV:PE&OLES) is its largest natural resource company and Mexico’s biggest producer of zinc.
Despite the relative strength of zinc, Nyrstar sold its mothballed Campo Morado zinc mine in Mexico for $20 million in June 2017. The mine was originally shut down in the first quarter of 2015 due to regional security issues. With payments being made over the course of the year, it will be handed over to Telon Resources and Reynas Minas.
Mine production: 500,000 MT
Bolivia produced 500,000 MT of zinc in 2017. That’s slightly higher than the year before, when production reached 490,000 MT. Sumitomo’s (TSE:8053) San Cristobal mine is a key producer of zinc in the country. The company states that the mine is the world’s sixth-largest zinc-producing mine, as well as the third-largest producer of silver in the world.
In 2017, Comibol, the country’s state-owned mining company, reached an agreement with zinc miners to increase wages after protests were held across the country by mine workers in 2016. Since then, it’s been announced that Comibol may open a bidding process for a contract to build a US$77-million Colquiri zinc-tin concentrator plant.
Mine production: 360,000 MT
Kazakhstan’s 2017 zinc production increased by 20,000 MT to reach 360,000 MT. Despite being one of the top zinc producers in the world, the country’s zinc output has decreased around 75 percent since reaching its peak in the 1980s, as per MBendi Information Services.
Kazzinc is a major zinc producer in the country, and also produces considerable amounts of copper, precious metals and lead. It bills itself as one of the five lowest-cost zinc producers in the world.
Mine production: 340,000 MT
Canada’s zinc output has been on the decline for the last few years, but its output increased from 322,000 MT in 2016 to 340,000 MT in 2017. The country has been producing less zinc in part due to the closure of the Brunswick mine in May 2013. It was one of the world’s largest and most profitable zinc mines, according to CBC News, but its resources are now depleted.
Trevali Mining has broken into the Canadian zinc space as well — it declared commercial production at its Caribou mine in New Brunswick in Q3 2016.
Mine production: 260,000 MT
Rounding out the top 10 for zinc production in the world by country is Sweden, which produced 260,000 MT of zinc in 2017, a slight increase from 257,000 MT the year before. Boliden’s (STO:BOL) Garpenberg zinc-silver mine and Lundin Mining’s (TSX:LUN) Zinkgruvan zinc-copper mine are located in the Scandinavian country.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Trevali Mining is a client of the Investing News Network. This article is not paid-for content.