MMG to Supply Zinc Concentrate to Minmetals North-Europe Through 2027

MMG

Strategic intra-group agreement supports China’s global metals supply chain from Australia’s Dugald River mine

Chinese mining company MMG Ltd has announced a multiyear sales agreement to supply zinc concentrate to Minmetals North-Europe from 2025 to 2027. Both companies operate under the umbrella of China Minmetals Corporation, a major state-owned enterprise overseeing critical metals supply chains.

Under the deal, MMG will supply approximately 100,000 to 120,000 tonnes per year of zinc concentrate from its Dugald River operations in Queensland, Australia. The Dugald River mine currently produces around 370,000 tonnes per year of zinc concentrate at full capacity.

Pricing linked to LME zinc and LBMA silver benchmarks

The contract specifies that pricing will be based on zinc content and silver by-products contained in the concentrate. Zinc will be priced using the London Metal Exchange (LME) average over the agreed contract period, while silver pricing will reference the London Bullion Market Association (LBMA) average.

A proposed annual price cap of $200 million will apply, helping both parties manage pricing risk amid volatile metals markets.

This supply agreement not only ensures consistent feedstock for Minmetals North-Europe's refining operations but also reinforces China’s secure access to zinc — a key material for galvanizing, battery production, and alloying.

Vertical integration strengthens China's control over zinc supply

MMG’s strategic partnership with Minmetals North-Europe highlights China Minmetals’ vertically integrated approach to securing raw materials. By aligning mining, trading, and refining under a single corporate structure, China enhances its ability to manage market fluctuations and supply risks.

With zinc demand rising globally for use in infrastructure, automotive, and renewable energy sectors, this long-term agreement positions China to maintain pricing stability and secure raw material access outside its borders.