Reuters reported that MMG Ltd.’s (HKEX:1208) Australia-based Century mine will produce 465,000 to 480,000 tonnes of zinc in concentrate this year, down from 488,233 tonnes in 2013. Century, which is the world’s third-largest zinc mine, is reaching the end of its operating life.
As quoted in the market news:
The decline comes amid a supply deficit driven by rising galvanised steel production. Zinc is primarily used as a rust-inhibitor in the galvanising process.
MMG’s nearby Dugald River mine is under development and was supposed to start yielding zinc in late 2015, partially replacing lost output from the Century mine, which MMG forecasts will run dry in mid-2015.
But MMG last month warned Dugald River would miss its start date due to poor ground conditions.