SUPPLY NEWS - Trevali hits commercial production at Caribou zinc mine

print Print this document.  Post this story to Facebook.
Archie Hunterarchie.hunter@fastmarkets.comDeputy Head of Physicals+44 (0) 20 7337 2143

London 13/07/2016 - Trevali Mining has achieved commercial production at its Caribou Zinc mine following record production in June, the Canadian miner said.

Caribou, in New Brunswick,produced 7,282 tonnes of 47-percent zinc concentrate in June, which lifts mine output to 35,887 tonnes so far this year, it said. As well, Caribou's output was 14,634 tonnes of lead concentrate with 39-43 percent metal content in the first half of 2016.

Output from its Santander mine in Peru reached a record, prompting it to lift its production guidance for the mine to to 57-60 million pounds (25,900-27,200 tonnes) of payable zinc in concentrate, up from 52-55 million payable pounds.

Santander's lead and silver guidance in 2016 remains unchanged at 22-25 million pounds (10,000-11,300 tonnes) of payable lead in concentrate and 800,000-1,000,000 ounces of payable silver. 

These output boosts will benefit Swiss miner-trader Glencore, which has off-take agreements covering all the production at both of the projects.

Zinc and lead treatment charges - the rates paid to smelters for the cost of processing concentrate into metal - have slumped since last year due to a tightening market and a shortage of good quality material.

TCs for zinc concentrate are currently at $110-120 per tonne CIF China, down 43 percent from last June's levels. Similarly, TCs for high-silver lead concentrate are $145-155 per tonne, down from $185-195 last summer.


(Editing by Mark Shaw)



Fastmarkets.com
mailto:press@fastmarkets.com
8 Bouverie Street, London, EC4Y 8AX, UK
+44 (0)845 241 9949