Platts reported Wednesday that because MMG Ltd.’s (HKEX:1208) Queensland-based Century zinc mine will be closing midway through next year, the company plans to switch its focus to zinc exploration.
However, CEO Andrew Michelmore told the news outlet that he sees that as a challenging prospect given that “most known zinc ore bodies have high capital costs, but low grades.”
As quoted in the market news:
‘We have 29 projects we track in copper,’ Michelmore said, but ‘in zinc, there’s less than a handful, and they’re in other people’s hands, so we look, and we say, ‘we’re right back to square one where we’re doing fundamental exploration work, a clean sheet of paper.’
‘Where can you find these types of zinc ore bodies that other people haven’t already [started developing]? … so we’re trying to find new areas.’