Hindustan Zinc Zinc Park Gains Momentum With CMR Alloy Manufacturing Deal

Hindustan Zinc vs Vedanta

Hindustan Zinc Zinc Park is gaining industrial momentum after Vedanta’s Hindustan Zinc signed an MoU with CMR Green Technologies to establish a zinc alloys manufacturing facility in Rajasthan. The planned unit will produce zinc alloys for automotive, infrastructure, die-casting, and consumer goods applications.

Hindustan Zinc Zinc Park is being positioned as more than a downstream processing zone. It is designed to link primary zinc supply, recycling capability, alloy production, and renewable energy into a more integrated value chain. That structure could strengthen India’s ability to serve both domestic manufacturers and export markets.

The agreement also deepens Hindustan Zinc Zinc Park’s role as a platform for industrial partnerships. It follows HZL’s earlier MoU with Tripura Group, under which Hindustan Zinc will supply zinc metal to a planned unit at the park through a long-term offtake arrangement.

Zinc Alloy Demand Supports India’s Downstream Manufacturing Push

Zinc alloys are important materials for die-casting, automotive components, infrastructure products, hardware, and consumer goods. These sectors require reliable alloy supply, consistent quality, and proximity to metal sources.

The CMR Green Technologies partnership adds a recycling dimension to the project. CMR’s non-ferrous recycling expertise can support metal recovery and reuse, helping the facility align with circular economy goals. This matters as manufacturers increasingly seek lower-waste and resource-efficient supply chains.

For India, the project supports a broader shift from primary metal production toward higher-value downstream manufacturing. Instead of exporting or selling zinc mainly as refined metal, HZL can help create more alloy-based industrial activity near its own production base.

Integrated Zinc Hub Could Strengthen Supply Security

The location of Zinc Park gives the project a clear supply-chain advantage. The park is near HZL’s Dariba zinc mine and its Chanderiya and Debari smelting operations, which can support steady raw material availability for downstream units.

HZL’s dominant position also gives the park strategic weight. The company is India’s largest zinc producer and holds 77% of the domestic market. That scale can help anchor long-term supply arrangements and attract additional manufacturing partners.

The renewable energy-powered model is also significant. Energy costs and carbon performance are becoming more important for metals customers, especially in automotive, infrastructure, and export-facing sectors. If executed well, Zinc Park could become a more competitive platform for zinc alloy manufacturing in India.

The Metalnomist Commentary

HZL’s Zinc Park strategy shows how primary metal producers are moving closer to downstream industrial customers. The key opportunity is not only zinc volume, but control over alloy supply, recycling integration, and low-carbon manufacturing capacity.

Korea Zinc US Assets Deal Secures America’s Only Primary Zinc Smelter

Korea Zinc

Korea Zinc US assets expansion has advanced after Nyrstar sold its East Tennessee and Mid Tennessee mining complexes and the Clarksville smelter to the South Korean metals producer. The transaction gives Korea Zinc direct control of key zinc mining and smelting infrastructure in the US.

The sale was first announced in December and was completed after regulatory and governmental approvals. Financial details were not disclosed.

Korea Zinc US assets now include the Clarksville smelter, which Nyrstar described as the only primary zinc smelter in the US. That makes the transaction strategically important for domestic zinc supply, industrial resilience and future non-ferrous processing capacity.

Clarksville Smelter Strengthens Domestic Zinc Supply

The Clarksville smelter gives Korea Zinc an established operating base in the US zinc market. Zinc remains essential for galvanizing steel, construction, infrastructure, automotive production, energy systems and manufacturing.

Trafigura will continue to sell Clarksville’s zinc metal and supply concentrate and oxide to the operation through the end of 2026. This transition arrangement should help maintain operational continuity while Korea Zinc prepares its broader investment strategy.

The Tennessee mining complexes also add upstream relevance. Control of mining assets and smelting infrastructure gives Korea Zinc a stronger position across feedstock access, processing and finished metal supply.

Korea Zinc Plans Larger Non-Ferrous Smelting Platform

Korea Zinc has already outlined a much larger US ambition. The company announced plans in December to build a $7.4bn smelter on the acquired, fully permitted sites through a joint venture with the US defense and commerce departments.

The planned facility would produce 13 non-ferrous products. Construction is expected to begin in 2027, followed by phased production from 2029, starting with zinc, lead and copper.

The new smelter is expected to process 1.1mn t/yr of raw materials and produce 540,000 t/yr of finished products. If delivered, the project would significantly expand US non-ferrous processing capacity and support domestic supply chains for strategic industrial metals.

The Metalnomist Commentary

Korea Zinc’s acquisition is more than a zinc transaction. It positions a major Asian smelter inside the US industrial base at a time when domestic processing capacity has become a strategic priority.

Refined Zinc Deficit Forecast Signals Tight Balance Despite Mine Supply Growth

ILZSG

Refined zinc deficit conditions are expected in 2026 as global demand slightly outpaces refined metal supply, according to the International Lead and Zinc Study Group. The group forecasts a refined zinc deficit of 19,000t this year.

The refined zinc deficit reflects a market where demand growth remains modest but supply growth is also limited. Global refined zinc demand is expected to rise by 1.3% to 14mn t, while refined zinc output is forecast to increase by 1.4% to 13.99mn t.

The refined zinc deficit is not large, but it highlights a fragile balance in a metal tied closely to galvanised steel, infrastructure, automotive production, construction and industrial manufacturing. Even small shifts in mine output, smelter operations or steel demand could move the market back into surplus or deeper deficit.

China, Europe and India Support Zinc Demand

China remains the world’s largest zinc consumer and will continue to anchor demand growth. ILZSG expects Chinese refined zinc demand to rise by 1.8% in 2026, following 1.9% growth in 2025.

European demand is forecast to rise by 1.1% this year, slowing from 3.5% growth last year. US demand growth is also expected to moderate to 1.4%, after expanding by 7% in 2025.

India and South Korea are expected to post higher refined zinc demand. Their growth reflects continued industrial activity, infrastructure needs and manufacturing consumption.

The Middle East outlook is weaker. Iran’s zinc usage is expected to decline sharply because of major infrastructure damage, especially in the steel sector, caused by the war. Demand in Saudi Arabia and the UAE is also expected to fall because of refined metal import disruption and economic instability.

This regional split matters for zinc producers and traders. Growth in Asia may support consumption, but slower demand in Europe and the US, combined with disruption in the Middle East, limits the strength of the global demand recovery.

Mine Supply Rises Slowly as Smelters Face Concentrate and Energy Constraints

Global zinc mine production is forecast to rise by only 0.3% to 12.55mn t in 2026. This follows a stronger 2025, when mine production rose by 4.8%, or 5.9% excluding China.

This year’s mine growth will be supported by higher output in the Democratic Republic of Congo, Portugal and China. New capacity in China, including the Huoshaoyun mine, is expected to contribute to supply.

However, declines in Peru, Sweden and the US will partly offset these gains. Lower output is expected at Antamina, Garpenberg and Red Dog, three important zinc-producing operations.

Refined zinc output is expected to rise by 1.4% to 13.99mn t. Chinese refined production is forecast to grow by 3% as new capacity starts up, following a 6.7% increase last year.

European refined output is also expected to rise, supported by Boliden’s Odda smelter expansion in Norway and the planned restart of Russia’s Verkhny Ufaley smelter. However, higher energy costs and limited concentrate availability continue to pressure several European producers.

Outside Europe and China, refined zinc production is expected to increase in South Korea but decline in Iran and Canada. This shows that refined zinc supply remains exposed to regional energy costs, concentrate access and operational disruption.

The lead market presents a different picture. ILZSG expects refined lead supply to exceed demand by 109,000t in 2026, with output rising by 1.3% to 13.83mn t and demand increasing by 1.1% to 13.72mn t.

The Metalnomist Commentary

The refined zinc deficit forecast points to a market that is balanced on a narrow edge, not structurally short. Zinc’s outlook will depend on whether Chinese smelter growth and new mine capacity can offset weaker regional demand and concentrate constraints.

Global Refined Zinc Market Stays in Deficit as Demand Outpaces Production

Zinc

Global refined zinc market conditions remained tight in 2025 as consumption continued to exceed production, despite stronger mine output and higher refined metal supply. The deficit narrowed to 33,000t from 69,000t in 2024, but the market still failed to return to the 252,000t surplus recorded in 2023.

The global refined zinc market deficit shows that recovering production has not fully restored balance. Mine supply increased across several major producing regions, but refined demand also continued to grow, led by China and Europe. This kept the zinc value chain under pressure even as concentrate availability improved.

The global refined zinc market also reflected a shift in Chinese trade flows. China imported significantly more zinc contained in concentrates, while refined zinc imports dropped sharply. This suggests stronger reliance on domestic smelting and refining capacity rather than external refined metal supply.

Mine Supply Recovery Improves Concentrate Availability

Global zinc mine production rose by 5.4pc to 12.59mn t in 2025, supported by gains in Australia, China, India, Iran, Peru, South Africa, and the Democratic Republic of Congo. China remained the largest producer, with output rising 2.8pc to 4.07mn t.

Peru recorded one of the strongest increases, with zinc mine output rising 18.6pc to 1.51mn t. Australian output also increased by 2.4pc to 1.13mn t. These gains helped offset declines in the US and Kazakhstan, where production fell by 11.2pc and 5.2pc respectively.

Europe delivered a significant mine-side recovery, with output rising 20.1pc to 1.08mn t. Higher production at the Vares operation in Bosnia and Herzegovina, new capacity in Russia, and the restart of Ireland’s Tara mine supported the increase. This recovery improved regional concentrate supply after a difficult period for European zinc mining.

Refined Zinc Demand Keeps Market Balance Tight

World refined zinc output rose by 2.1pc to 13.83mn t in 2025, mainly supported by higher production in China and Europe. Chinese refined output increased by 6.1pc to 7mn t, while European production rose by 2.7pc to 2.17mn t.

Demand still slightly exceeded supply. Global refined zinc consumption rose by 1.9pc to 13.86mn t, with Chinese demand increasing by 1.9pc to 7.05mn t. European demand rose by 3.5pc to 1.98mn t, reinforcing the market’s underlying strength despite uneven industrial conditions.

China’s import structure highlights the changing zinc supply chain. Imports of zinc contained in concentrates rose by 29.8pc to 2.58mn t, while refined zinc imports fell by 51.1pc to 210,000t. This points to stronger concentrate pull from Chinese smelters and reduced dependence on imported refined zinc.

The Metalnomist Commentary

The zinc market is no longer in a deep deficit, but it remains structurally tight enough to keep supply discipline important. The key signal is China’s rising concentrate imports, which show that smelting capacity and raw material access are becoming more important than refined metal trade alone.

European zinc premiums stay stable as LME stocks decline

European Zinc

European zinc premiums remained stable this week even as LME stocks fell further and demand stayed muted. Market participants report that European zinc premiums for special high-grade (SHG) material are caught between weak spot consumption and tightening warehouse inventories. As a result, the regional zinc market is balanced more by opposing forces than by any clear bullish or bearish trend.

Weak demand offsets tightening LME zinc stocks

Spot demand for SHG zinc in Europe remains subdued as industrial activity stays soft across core consuming sectors. However, lower buying interest has prevented European zinc premiums from reacting more strongly to the latest drawdown in exchange inventories. Buyers feel little urgency to chase units, even as visible stocks trend lower.

At the same time, LME three-month zinc prices show only modest movement. Prices settled at $2,930/t, down just 0.71pc week on week, underlining the market’s cautious tone. Meanwhile, LME zinc stocks fell another 6.63pc to 46,825t, tightening the buffer of readily available metal. Therefore, investors and physical traders are watching whether continued stock draws eventually push European zinc premiums higher if demand recovers.

New South African copper-zinc supply on the horizon

Supply-side developments also matter for long-term zinc balance. Australian developer Orion Minerals recently signed a non-binding term sheet with Glencore for up to $250mn in financing. The funds will support development of the Prieska copper-zinc mine in South Africa’s Northern Cape, alongside long-term concentrate offtake.

Prieska holds 31mn t grading 1.2pc copper and 3.6pc zinc, with a planned two-phase mine life of 13.2 years. Steady-state output is targeted at 65,000 t/yr of zinc and 30,000 t/yr of copper, which will add a meaningful new stream of concentrates into global flows once in production. As a result, prospective new supply such as Prieska could eventually ease tightness in refined markets and influence future European zinc premiums.

The Metalnomist Commentary

Europe’s zinc market is in a stand-off between demand weakness and steadily falling LME inventories. The next decisive move in European zinc premiums will likely depend on whether macro demand recovers first or new concentrate supply, like Prieska, arrives fast enough to cap any tightening. For now, physical players are managing exposure carefully, treating stability as temporary rather than structural.

Zinc Prices Set to Drop in 2025 Due to Increased Supply and Weak Demand

McArthur River Mining

Zinc prices are expected to decline in 2025, as global supply improves and demand remains subdued in key consumption sectors, particularly in the construction and automotive industries. This shift comes after a strong price performance in 2024, driven by tight supply conditions and mining disruptions.

Price Performance in 2024

Zinc has been one of the standout performers on the London Metal Exchange (LME) in 2024, with prices hovering above $3,000 per ton in December, compared to $2,537 per ton in January. This 6% increase from the previous year can be largely attributed to supply disruptions at key mines. Notable interruptions included Glencore's McArthur River mine in Australia, which halted operations in March due to extreme rainfall, and MMG’s Dugald River mine in China, which was placed on care and maintenance during Q3.

The zinc market faced a 164,000-ton deficit in 2024, primarily due to reduced production from mines like Boliden's Tara mine in Ireland and Almina's Aljustrel mine in Portugal. However, supply conditions are expected to shift in 2025, leading to a bearish outlook for zinc prices.

Improved Supply Forecast for 2025

The International Lead and Zinc Study Group (ILZSG) forecasts a surplus of 148,000 tons in 2025 as new mines and production ramps up globally. One major development contributing to this surplus is the reopening of Ivanhoe Mines' Kipushi mine in the Democratic Republic of Congo, which is expected to produce 278,000 tons per year over its first five years. Kipushi will become Africa's largest zinc mine and the fourth-largest globally.

In addition, European production is expected to rise, with increased output from Bosnia and Herzegovina, Portugal, and the reopening of Tara operations in Ireland. Russia's zinc production is also set to grow, supported by the newly opened Ozerneoye plant. Other key regions, including Australia, Canada, China, Japan, the Netherlands, and Norway, are expected to see increased concentrate supply, especially in the first quarter of 2025. According to trading firm Macquarie, global mined supply is projected to grow by 5.8% in 2025, with around 570,000 tons of zinc in new project approvals.

Weak Demand Pressures Zinc Prices

While supply is set to increase, demand growth for zinc is expected to remain weak, especially in the construction and automotive sectors, which together account for a significant portion of global zinc consumption. Carbon steel demand has fallen in 2024, driven by weakness in the construction sector, particularly in China. European manufacturing also remains sluggish, with the automobile sector facing significant challenges. Volkswagen, for instance, has announced plans to close several plants and lay off thousands of employees in response to falling sales and weak demand for cars.

Macquarie predicts a modest 1.7% growth in global refined zinc demand in 2025, a revision down from the previously anticipated 2.5% growth rate. The uncertainty surrounding potential new U.S. tariffs under President-elect Donald Trump's administration adds another layer of risk, particularly regarding the strength of the U.S. dollar and global trade dynamics.

Zinc Price Outlook for 2025

Given the expected supply surplus and the persistent demand lag, analysts are generally bearish on zinc prices for 2025. The World Bank and Fitch Ratings expect zinc prices to average $2,600 per ton in 2025, with further declines to $2,500 per ton by 2026. Macquarie is similarly forecasting a drop to $2,650 per ton in 2025, followed by a decline to $2,450 per ton in 2026. These price drops reflect the anticipated market surplus and continued weak demand.

Conclusion

As zinc supply increases and demand struggles to pick up, the market is expected to experience price declines in 2025. The key factors driving this change include the reopening of major mines, such as Kipushi, and continued challenges in major zinc-consuming sectors like construction and automotive manufacturing. While supply-side factors are positive, weak demand and potential trade uncertainties are expected to put downward pressure on zinc prices in the years to come.

Cajamarquilla Zinc Refinery Fire Raises Peru Supply Risk as Damage Remains Unclear

Nexa, Peru

Cajamarquilla zinc refinery fire has created uncertainty around Peruvian zinc supply after a transformer failure triggered a blaze at Nexa Resources’ refinery near Lima. The company has not yet determined the extent of damage or whether production has been affected.

Cajamarquilla zinc refinery fire was brought under control by Wednesday afternoon after starting at 6:49am local time. Nexa evacuated all employees from the affected area, while one worker and three contractors were injured.

Cajamarquilla zinc refinery fire matters because the site is one of Latin America’s key zinc refining assets. Cajamarquilla produced 345,300t of zinc metal in 2025, making any potential outage relevant to regional refined zinc availability.

The immediate market impact remains uncertain. Nexa is still assessing the damage, and the affected section of the plant has not been clearly identified.

Transformer Failure Puts Refinery Continuity in Focus

The fire began after a transformer at the plant failed, according to Peru’s grid operator. Transformer incidents can affect power supply, electrical systems and operating continuity, depending on the location and severity of the damage.

For a zinc refinery, stable power is critical. Electrolytic refining, casting and associated plant systems depend on reliable electricity and coordinated process control.

Nexa has not yet confirmed whether operations were disrupted. A market source said the company was still assessing the production impact.

The injury of workers and contractors also makes the incident a safety event first. Refinery accidents often trigger internal reviews, regulatory checks and equipment inspections before normal operating confidence can return.

If the fire is limited to electrical infrastructure and repairs are quick, the supply impact may be modest. If the damage affects key refinery systems, downtime could tighten refined zinc availability.

Zinc Market Watches for Output Impact

Cajamarquilla’s 2025 zinc metal output of 345,300t gives the site meaningful market weight. A prolonged disruption could affect customers that rely on Peruvian refined zinc supply.

Zinc metal is widely used in galvanizing steel, die casting, brass, chemicals and industrial manufacturing. Supply interruptions at major refineries can affect premiums, delivery planning and regional procurement decisions.

The incident comes at a time when zinc markets are already sensitive to smelter reliability and concentrate availability. Buyers will watch whether Nexa issues guidance on production losses, repair timelines or shipment delays.

For Peru, the refinery is also strategically important because it converts mined zinc units into higher-value refined metal. Any disruption would affect not only Nexa, but also the country’s downstream metals value chain.

The key issue now is transparency. Market participants need clarity on which units were affected, whether production continues, and how long any repairs may take.

The Metalnomist Commentary

The Cajamarquilla incident shows how refined zinc supply can be disrupted by plant-level infrastructure, not only mine output. Until Nexa confirms the damage and production status, buyers will treat Peru’s refined zinc flow with caution.

Zijin Zinc Output Fell in 2025 as Lithium and Molybdenum Production Rose

Zijin Zinc

Zijin zinc output declined in 2025 as the Chinese diversified miner shifted part of its zinc production base from open-pit to underground mining. Zijin Mining produced 357,453t metal equivalent of zinc concentrate, down 12% from a year earlier.

The company’s lead concentrate output also fell by 7.5% to 41,065t metal equivalent. Zijin aims to produce 400,000t of zinc and lead concentrate in 2026, broadly in line with its combined 2025 output.

Zijin zinc output was mainly affected by the transition at the Bisha mine in Eritrea. The move to underground mining temporarily reduced production while new infrastructure was being built, with transition-related work continuing through 2025-26.

Bisha Transition Weighed on Zinc as Market Surplus Risk Increased

The Bisha mine remained the main reason behind Zijin’s lower zinc performance. The company expects zinc concentrate output from Bisha to recover by around 10% to 91,000t metal equivalent in 2026, compared with 83,000t in 2025.

Zijin remained China’s largest mined zinc producer and the world’s fourth-largest. The company also retained an advantage in developing and operating lower-grade zinc and lead ore bodies.

China produced around 3.35mn t of mined zinc in 2025, according to industry estimates. However, Zijin expects China’s zinc market to move into surplus in 2026 as rising concentrate supply and weak real estate demand outweigh support from the power generation sector.

The company expects zinc prices to trend lower in the second half of 2026. This outlook suggests that zinc producers may face tighter margins unless infrastructure, power-sector demand, or export flows provide stronger support.

Lithium and Molybdenum Became Key Growth Pillars

Zijin lithium production rose sharply as the company accelerated its battery materials strategy. The miner produced 5,800t of lithium carbonate equivalent in 2025 and plans to lift output to 30,000t LCE in 2026.

The company’s lithium portfolio has entered a faster ramp-up phase. The Laguocuo salt lake project in Tibet, the 3Q salt lake project in Argentina, and the Xiangyuan hard-rock lithium project have all entered production, while construction at the Manono lithium project continues.

Zijin also completed its acquisition to control Zangge Mining. Under its plan, the company expects LCE output to rise sharply to 270,000–320,000t by 2028, positioning it as a major future lithium supplier.

Molybdenum also strengthened. Zijin produced 11,500t in 2025, up 24% from a year earlier, as it moved toward becoming one of the world’s largest molybdenum producers. Its Shapinggou molybdenum project in Anhui received approval for a 10mn t/yr mining and beneficiation project in October 2025, supporting a target of 25,000–35,000t of mined molybdenum by 2028.

The Metalnomist Commentary

Zijin’s 2025 results show a portfolio in transition. Zinc is facing mine-cycle and market pressure, while lithium and molybdenum are becoming stronger growth engines tied to batteries, specialty steels, and energy transition demand.

Kipushi Zinc Concentrate Could Link DRC Supply to the US Critical Minerals Reserve

Ivanhoe DRC

Kipushi zinc concentrate could become part of a new supply route into the US critical minerals reserve. Ivanhoe Mines is discussing a deal involving Mercuria and Gécamines to channel production from its Kipushi mine toward the United States. The concentrate also contains germanium and gallium, which lifts its strategic value beyond zinc alone. As a result, Kipushi zinc concentrate now sits at the intersection of mining, trading, and US supply chain policy.

This matters because the proposed arrangement is not a standard offtake deal. Mercuria’s offtake would be assigned to the trading division of Gécamines under the structure being discussed. That could give Gécamines access to up to 50pc of the mine’s concentrate production, including sales to the US. Therefore, Kipushi zinc concentrate is becoming part of a broader geopolitical conversation around critical minerals access.

The timing is also important. The discussions come just as Washington launches Project Vault, the new $12bn domestic critical minerals stockpile for US manufacturers. That means the market is no longer talking only about future mine development. It is also talking about how existing production can be redirected into strategic reserve channels.

Kipushi Zinc Concentrate Carries More Than Zinc Value

Kipushi zinc concentrate stands out because it carries associated critical minerals that matter to advanced industry. The article notes that the material contains quantities of germanium and gallium. Those two metals are increasingly important in electronics, semiconductors, and strategic manufacturing. Consequently, Kipushi zinc concentrate could offer more supply chain value than a typical zinc stream.

That additional value helps explain why the United States could be interested. Project Vault is expected to target critical materials needed by domestic manufacturers, and recent commentary around the reserve has already highlighted metals such as gallium. Therefore, a zinc concentrate stream with embedded strategic by-products could fit well into the reserve’s broader procurement logic.

This also strengthens the DRC’s role in the supply chain discussion. The country is already central to global critical minerals debates because of its copper and cobalt position. Now, DRC zinc concentrate with germanium and gallium content may gain more visibility as western buyers look for diversified supply routes. As a result, Kipushi may become more strategically relevant than its headline zinc volumes first suggest.

US Critical Minerals Reserve Strategy Is Moving Closer to Real Supply Flows

US critical minerals reserve policy is now moving beyond theory and closer to real transactional supply. Project Vault has created a framework for securing non-military critical minerals for domestic manufacturers. Traders such as Mercuria and Traxys are already being linked to that effort. Therefore, the Kipushi discussions show how reserve policy could quickly influence actual commodity flows.

The role of Mercuria and Gécamines is especially important in that context. This is not only about mine ownership. It is also about who controls marketing rights, trading channels, and final destination. That gives the proposed agreement more strategic significance than a conventional sales arrangement. Meanwhile, it shows that state-linked and private trading structures may increasingly work together in critical minerals procurement.

For Ivanhoe, the deal would also align its production with a bigger strategic trend. Western governments and manufacturers are looking for secure access to metals outside heavily concentrated supply chains. If Kipushi zinc concentrate becomes part of that effort, the mine could strengthen its position in both the zinc market and the wider critical minerals conversation. Consequently, this discussion may matter well beyond one offtake contract.

The Metalnomist Commentary

This story is important because it shows how quickly ordinary concentrate flows can become strategic flows. Once zinc concentrate includes metals such as germanium and gallium, the supply chain logic changes. If Project Vault starts drawing in mixed-value materials like Kipushi zinc concentrate, the next phase of critical minerals competition will be shaped as much by offtake design as by mine ownership.

South32 Copper and Zinc Project Pipeline Targets Looming Supply Gaps

South32

South32 copper and zinc project pipeline is becoming more important as the company positions for tighter metals markets after 2028. The producer said its future greenfield portfolio is focused on copper, zinc, and silver. It may develop up to 25 new copper and zinc-lead-silver projects in the coming years. As a result, South32 copper and zinc project pipeline is being shaped by long-term supply anxiety rather than near-term output changes. 

This matters because South32 did not change its near-term copper and zinc guidance. Instead, it is directing attention to future shortages that may emerge in the late 2020s and early 2030s. The company plans to spend $30mn on greenfield exploration in the 2025-26 financial year. Therefore, South32 copper and zinc project pipeline is a strategic bet on future scarcity, not current market tightness. 

Future Copper Supply Gap Is Driving the Strategic Shift

Future copper supply gap is the clearest reason behind South32’s exploration focus. The company expects global copper demand to exceed supply from around 2028. Its forecast points to an 8mn t shortfall by 2035. Consequently, copper is moving to the center of long-term mining strategy. 

The demand logic is easy to understand. Grid upgrades, renewable energy investment, electrification, and data center construction all support stronger copper use. Other industry forecasters also expect deficits to emerge within the next few years. Therefore, South32 copper and zinc project pipeline aligns with a wider industry view that copper scarcity is becoming harder to avoid. 

This also explains why other large miners are moving in the same direction. Glencore wants to double copper production capacity by the mid-2030s, while Rio Tinto plans to raise copper capacity by 20pc by 2030. That context matters because it shows South32 is not acting alone. Meanwhile, competition for quality copper projects is likely to intensify as the next cycle approaches. 

Zinc Supply Deficit Is Emerging as a Second Strategic Theme

Zinc supply deficit is the second major theme in South32’s outlook. The company expects zinc demand to exceed supply from 2029. Its forecast points to a 4mn t shortfall by 2035. As a result, zinc is no longer just a supporting metal in the company’s pipeline. 

That matters because zinc often receives less attention than copper in electrification discussions. Yet tighter zinc availability can still create meaningful industrial stress across steel, coatings, infrastructure, and broader manufacturing. South32’s decision to keep zinc inside its exploration focus suggests the company sees a more durable structural opportunity. Therefore, South32 copper and zinc project pipeline is diversified around two different future shortages, not one. 

The Metalnomist Commentary

South32 is sending a clear signal that the next mining race will be won through project pipeline quality, not only current production. Copper is the headline metal, but zinc may become the quieter opportunity if deficits develop as projected. If these forecasts hold, greenfield exploration today will define who has supply tomorrow. 

Garpenberg Zinc Mine Halt Adds Fresh Pressure to European Zinc Supply

Garpenberg Zinc

The Garpenberg zinc mine halt has added another supply risk to an already tight zinc concentrate market. Boliden suspended mine production at the Swedish operation after seismic activity caused a rockfall and pressure wave on 14 March.

Boliden said seismic activity is normal at Garpenberg, but conditions rose to abnormally high levels late on 14 March. The company evacuated the mine for safety reasons, stopped mining during the evacuation, and suspended concentrator production on 15 March.

The incident also affected workers underground. A pressure wave from the rockfall hit four employees in nearby locations, making safety inspections the immediate priority before any restart.

Garpenberg Disruption Hits a Major European Zinc Asset

Garpenberg is one of Boliden’s most important base metals operations. The mine produced 101,780 tonnes of zinc last year, alongside 38,692 tonnes of lead and 735 tonnes of copper.

That scale makes the Garpenberg zinc mine important for European concentrate availability. Any extended outage could tighten regional feedstock supply and increase pressure on smelters already managing weak treatment charges.

Boliden said output will restart gradually once inspections of infrastructure and underground workings are complete. However, the company has not set a timeframe for resuming production, leaving buyers exposed to uncertainty.

Zinc Concentrate Market Faces Another Supply Constraint

The Garpenberg zinc mine halt comes at a sensitive moment for the zinc market. Concentrate supply remains tight, and smelters are competing for limited feedstock while treatment charges stay low.

A temporary disruption at Garpenberg may not change the global balance alone. However, it matters because zinc smelters are already operating in a constrained raw material environment.

The outage also highlights the value of integrated mining and smelting systems. Boliden usually benefits from internal concentrate supply, but even integrated producers remain exposed when mine-level disruptions interrupt feed flows.

For European zinc consumers, the key issue is duration. A short safety-related stoppage would be manageable, but a longer suspension could reinforce concentrate tightness and add pressure to refined zinc supply planning.

The Metalnomist Commentary

Garpenberg shows how fragile zinc supply has become when even operational safety events can carry market significance. In a low-TC environment, every meaningful mine disruption strengthens the advantage of producers with diversified feed sources.

Global refined zinc market surplus set to widen through 2026

Zinc

The global refined zinc market surplus is forecast to widen sharply as supply growth outpaces a modest demand recovery. According to ILZSG projections, refined zinc will move from an 85,000t surplus in 2025 to a 271,000t surplus in 2026. As a result, the global refined zinc market surplus will increasingly shape treatment charges, pricing power and smelter utilisation, especially outside China. The refined zinc balance already showed a 47,000t surplus in the first half of this year, confirming the shift from earlier tightness.

However, demand for refined zinc is still expected to grow, even under pressure from weak construction and patchy industrial activity. ILZSG forecasts refined zinc use to rise by 1.1pc to 13.71mn t in 2025, led by a 1.3pc increase in China on stronger vehicle output. Meanwhile, European demand should finally stabilise, rising by 0.7pc after three years of contraction, with France, Germany, Norway and Poland offsetting declines in Italy and Russia. Emerging markets including India, Saudi Arabia, Thailand and Vietnam will also support consumption, even as Brazil and South Korea lag.

Supply expansion drives global refined zinc market surplus

The global refined zinc market surplus is driven primarily by a clear upturn in mine and smelter supply. ILZSG expects zinc mine production to rise by 4.6pc to 12.51mn t in 2025, with 5pc growth outside China. Therefore, higher output from Bosnia and Herzegovina, Ireland, Portugal, Russia and Sweden joins gains in China, South Africa, Peru and the DRC. Further mine growth in 2026 will be underpinned by the reopening of Aljustrel in Portugal and higher production in Australia, Brazil, the DRC and China.

At the smelter level, refined zinc output is forecast to rise by 2.7pc to 13.8mn t in 2025, then by 2.4pc to 14.13mn t in 2026. The biggest driver is China, where new capacity is being commissioned and is expected to lift output by 6.2pc in 2025. Meanwhile, European production receives a structural boost from Boliden’s 150,000 t/yr expansion at the Odda smelter in Norway. These increases will outweigh declines in Italy, Japan, Brazil, Canada, Mexico and South Korea, locking in the global refined zinc market surplus unless demand surprises to the upside.

Refined lead market also tips into surplus

The surplus story extends beyond zinc, with refined lead also moving into a looser balance. ILZSG projects refined lead supply to exceed demand by 91,000t in 2025 and 102,000t in 2026. Demand for refined lead is still expected to rise by 1.8pc this year to 13.25mn t, and by 0.9pc to 13.37mn t in 2026, driven mainly by Europe, Vietnam and the US. However, supply will grow faster, with refined lead output seen rising by 2pc to 13.34mn t in 2025 and by 1pc to 13.47mn t in 2026, supported particularly by Brazil and India. As a result, both zinc and lead markets are heading into a multi-year period of oversupply.

The Metalnomist Commentary

The global refined zinc market surplus projected for 2025–26 signals a prolonged phase of buyer’s market dynamics in galvanising and alloy segments. Smelters with high energy costs or weaker integration into mine supply will face the greatest margin pressure as treatment terms and premiums adjust. For lead, surpluses underline the importance of battery recycling economics and regional policy support, especially as EV and energy storage value chains reshape traditional lead-acid demand.

Hindustan Zinc to Double Lead and Zinc Capacity

Hindustan Zinc

HZL Approves Major Expansion in Rajasthan

Hindustan Zinc (HZL) will double its lead, zinc and silver production capacity within five years. The company’s board has approved a Rs120bn ($1.39bn) investment for a new 250,000 t/yr integrated smelter in Debari, Rajasthan. Alongside, mined metal capacity will expand by 330,000 t, with the project targeted for completion in 36 months.

This expansion will raise HZL’s refined zinc and lead smelting capacity to nearly 2mn t/yr and boost silver production to 1,500 t/yr. Current annual production stands at 1.1mn t.

Anticipating India’s Rising Demand for Zinc

India’s zinc consumption is projected to rise sharply over the next decade. The International Zinc Association highlights that heavy infrastructure spending and steel sector growth will drive demand. HZL’s expansion aligns with this forecast, ensuring it can supply both domestic and global markets.

As the world’s largest integrated zinc producer and among the top five silver producers globally, HZL already dominates India’s primary zinc market with a 77% share. The planned increase in output strengthens its strategic position across international supply chains.

Strengthening Global Reach and Market Share

HZL supplies zinc, lead, and silver to more than 40 countries worldwide. Its production increase will reinforce India’s role as a key player in global metals markets. By expanding capacity, HZL positions itself to meet both export commitments and domestic industrial growth, particularly in construction, energy, and automotive sectors.

The expansion also reflects a broader trend of miners and smelters aligning investments with future metal-intensive infrastructure and green energy projects, where zinc plays a critical role in galvanization and corrosion resistance.

The Metalnomist Commentary

HZL’s plan to double lead and zinc capacity is a strategic response to India’s infrastructure boom and global supply needs. By combining capacity growth with its existing market dominance, HZL strengthens its position as a global leader in base metals. This expansion also signals confidence in long-term demand despite current price volatility in the zinc market.

Zinc Demand and Supply Expected to Rebalance in 2025

Zinc

Recovery in Automotive, Infrastructure, and Green Energy to Boost Zinc Market

Global zinc demand is projected to rise marginally in 2025, driven by steady growth from automotive, infrastructure, and green energy sectors. According to the International Zinc Association (IZA), refined zinc demand is forecast to increase by 1%, with notable growth in India and the United States, while China and Europe show moderate gains.

Meanwhile, the zinc supply landscape is recovering after a contraction in 2024. ILZSG projects global mine supply will increase by 4.3% this year, supported by new output from the Kipushi, Tara, and Buenavista mines. However, some production sites, including Russia’s Ozernoye and the Red Dog mine in the U.S., may fall short of expectations, highlighting persistent uncertainty in the zinc supply chain.

Smelter expansions are also contributing to a long-term supply rebound. Boliden’s Odda 4.0 project in Norway is on track to reach 350,000 t/yr capacity in the second half of 2025. Additional capacity from the Nordenham smelter in Germany and new Chinese smelters will be partially offset by weaker output from facilities in Canada, Italy, Australia, Japan, and South Korea. As a result, the ILZSG forecasts a global surplus of 93,000 tonnes in 2025, reversing last year’s deficit of 62,000 tonnes.

Automotive and Green Tech to Sustain Long-Term Zinc Growth

The automotive industry remains a key driver of zinc consumption, particularly in galvanised steel for vehicle bodies. Western markets already have high galvanisation rates, while China and India are rapidly catching up. The IZA forecasts a 22% increase in auto-sector zinc use by 2030, translating to an additional 140,000 tonnes of demand.

India’s rapid urban development and China’s robust manufacturing output are also boosting zinc demand across infrastructure and consumer goods. In Europe, public investment in infrastructure and defence, especially in Germany, is expected to support a moderate recovery in zinc usage from late 2025 onward.

Green energy technologies — including wind, solar, and battery systems — are also emerging as major zinc consumers. The IZA projects demand from green tech will exceed 652,000 tonnes by 2030, with more than $1 billion already invested in zinc-based energy storage systems.

The Metalnomist Commentary

Zinc's supply-demand fundamentals are gradually stabilizing, with rising industrial and green-tech consumption offsetting geopolitical and logistical risks. The rebound in mine and smelter capacity suggests a structurally balanced market may return by 2025. However, long-term resilience will depend on investment in both primary production and recycling infrastructure.

EU Zinc Imports Fell in 2025 as Dutch and German Demand Weakened

Zinc

EU zinc imports declined in 2025 as weaker buying from the Netherlands and Germany outweighed stronger flows into Italy and Belgium. EU countries imported 1mn t of refined 99.99pc grade unwrought zinc, down 3.2% from the previous year.

EU zinc imports remained closely tied to Europe’s uneven industrial demand. Zinc consumption depends heavily on galvanizing, construction, automotive parts, die casting, infrastructure and manufacturing activity, all of which faced mixed conditions across the region.

EU zinc imports also showed a shift in regional trade flows. The Netherlands remained the largest importer, but its volumes fell sharply, while Italy recorded a strong increase from May onward.

Netherlands and Germany Led the Import Decline

The Netherlands accounted for 22.5% of EU refined zinc imports in 2025, with about 225,950t. However, this was down by roughly 21% on the year, showing weaker intake from Europe’s main zinc import hub.

Germany, the second-largest importer, also reduced purchases. Its imports fell by 10.6% to nearly 198,400t, reflecting continued pressure from weak construction and manufacturing activity.

Belgium moved in the opposite direction, with imports rising by 1.1% to 171,600t. Italy posted the strongest increase among major buyers, with imports rising by 60% to 140,100t after firm year-on-year gains every month from May.

Spain Increased Zinc Supply as Finland and Belgium Fell

Spain became a stronger supplier within the EU refined zinc market in 2025. The country accounted for just over 180,800t of member states’ imports, up 42% from the previous year.

But Spain’s gains were offset by lower deliveries from Finland and Belgium. Finland’s exports fell by 27.4% to 156,180t, while Belgium’s exports declined by 17.7% to nearly 118,600t.

LME three-month zinc prices averaged $2,853/t in 2025, up 1.5% from the previous year. The modest price increase showed some recovery after weak construction and poor manufacturing activity weighed on zinc prices in 2024, but it did not signal a strong demand rebound.

The Metalnomist Commentary

The decline in EU zinc imports shows that Europe’s refined zinc market is still being shaped by weak industrial demand rather than supply shortage. Italy’s stronger buying is notable, but the broader picture remains cautious while construction and manufacturing activity stay uneven.

Hindustan Zinc Refined Metal Capacity Target Signals Major Indian Zinc Expansion

Hindustan Zinc

Hindustan Zinc refined metal capacity could nearly double by FY2030 as the Indian producer advances a major expansion programme. The company aims to lift refined metal capacity from 1.12mn t/yr today to 2mn t/yr by the April 2029-March 2030 fiscal year.

Hindustan Zinc refined metal capacity growth will begin with an approved 250,000 t/yr integrated zinc smelter expansion at Debari. The project will raise total refined metal capacity to 1.38mn t/yr, with completion targeted in the second quarter of FY2028-29.

Hindustan Zinc refined metal capacity could then rise further through two additional proposed integrated smelter projects, one for zinc and one for lead. These projects remain subject to board approval but would take total capacity to the company’s 2mn t/yr target.

The expansion is strategically important for India’s metals supply chain. Zinc and lead are essential for galvanised steel, infrastructure, batteries, automotive components, construction and industrial manufacturing.

Debari Expansion Anchors HZL’s Smelting Growth

The Debari zinc smelter expansion is the first major approved step in HZL’s capacity roadmap. The 250,000 t/yr project will strengthen the company’s downstream processing base and increase its ability to convert mined metal into refined output.

This matters because mined metal growth alone does not create refined supply. Smelting and refining capacity must expand in parallel if India wants more domestic zinc availability for steel galvanising and industrial use.

HZL delivered record mined metal output of 315,000t in January-March. This was up 14% from the previous quarter and 2% from a year earlier.

Full-year mined metal production reached a record 1.11mn t in FY2025-26, up from 1.09mn t a year earlier. Higher ore output and improved grades at the company’s underground mines in Rajasthan supported the increase.

However, refined metal sales slipped slightly to 1.04mn t from 1.05mn t a year earlier. Debottlenecking work at the Chanderiya and Dariba smelters weighed on output.

That contrast shows why smelter investment is central to the company’s growth plan. HZL has strong upstream production, but refined metal capacity and operating stability will determine how much value it captures.

Silver Capacity Adds Energy Transition Exposure

HZL is also targeting major growth in silver production. The company aims to lift silver capacity to 1,500 t/yr by FY2029-30.

Saleable silver production rose by 11% from the previous quarter to 176t in January-March. Full-year silver output reached 627t.

The silver target adds another strategic layer to HZL’s expansion. Silver demand is supported by solar panels, electric vehicles, electronics and electrical applications.

This gives HZL exposure beyond traditional zinc and lead markets. As India expands solar power, electrification and electronics manufacturing, domestic silver availability could become more valuable.

The company’s integrated position is important. HZL can link mining, smelting, refining and by-product recovery, giving it a stronger platform than producers focused only on one stage of the value chain.

For India, the expansion supports domestic metals security. Higher zinc, lead and silver capacity can reduce import exposure and strengthen supply for infrastructure, renewable energy and manufacturing.

The key challenge will be execution. HZL must complete the Debari expansion, secure approvals for the next smelter projects and maintain mined metal growth from Rajasthan.

The Metalnomist Commentary

HZL’s growth plan shows that India is building deeper domestic capacity in core industrial metals, not only critical minerals. The combination of zinc, lead and silver expansion gives the company a stronger role in infrastructure, galvanised steel and energy transition supply chains.

Orion Glencore copper-zinc deal backs South Africa’s Prieska revival

Orion Glencore

The Orion Glencore copper-zinc deal will inject up to $250mn into South Africa’s Prieska mine redevelopment. Orion Minerals signed a non-binding term sheet with Glencore covering staged financing and long-term concentrate offtake, making the Orion Glencore copper-zinc deal a cornerstone funding package for the project. As a result, the Orion Glencore copper-zinc deal positions Prieska as a significant future supplier of copper and zinc for the energy transition.

Orion Glencore copper-zinc deal structures phased financing for Uppers and Deeps

The agreement splits funding between Prieska’s near-surface “Uppers” orebody and the deeper “Deeps” deposit. Orion expects $40mn to flow first into the Uppers to fast-track initial mine development and near-term output. Meanwhile, a second tranche of $160mn–210mn will fund full build-out of the Deeps, subject to due diligence and final documentation.

Glencore also offers an early drawdown facility of up to $50mn for Deeps pre-works. This structure allows Orion to de-risk critical engineering and infrastructure before committing to the full capital envelope. Therefore, the Orion Glencore copper-zinc deal blends development capital with commercial offtake in a way that lowers financing risk.

Under the term sheet, Glencore will take 100pc of bulk concentrates from the Uppers for five years. It will also off-take 100pc of copper and zinc concentrates from the Deeps for 10 years. Orion retains flexibility on delivery points and advance sales, giving it room to optimise logistics and pricing across global markets. First production is targeted for late 2026.

Prieska and Okiep strengthen South Africa’s energy transition metals pipeline

Prieska carries a sizeable resource base to underpin the Orion Glencore copper-zinc deal. The project hosts 31mn t grading 1.2pc copper and 3.6pc zinc. A definitive feasibility study released in March outlined a two-phase development plan. It targets a combined 13.2-year mine life with steady-state output of 30,000 t/yr copper and 65,000 t/yr zinc.

These volumes are material in the context of tightening global copper and zinc supply. Copper is central to electrification, grid build-out and EV infrastructure. Zinc remains key for galvanised steel and infrastructure corrosion protection. Therefore, Prieska aligns directly with energy transition metal demand.

At the same time, Orion continues to advance its Okiep copper project in the same region. Together, Prieska and Okiep could re-establish the Northern Cape as a meaningful copper district. The Orion Glencore copper-zinc deal sends a positive signal for South African base metals investment, even as regulatory and power challenges persist.

The Metalnomist Commentary

Glencore’s willingness to provide both capital and long-dated offtake confirms Prieska’s strategic appeal in a tightening copper-zinc market. For Orion, the deal reduces financing uncertainty and validates its district-scale ambitions in the Northern Cape. Market participants should now watch execution discipline, permitting progress and how quickly Prieska can move from term sheet to binding financing and construction.

Korea Zinc Tennessee Smelter Gains FAST-41 Support for Critical Minerals Refining

Korea Zinc

Korea Zinc Tennessee smelter plans have gained federal permitting support after the US Permitting Council added Project Crucible to FAST-41 coverage. The designation is intended to speed permitting for the proposed smelting and refining facility in Clarksville, Tennessee.

The Korea Zinc Tennessee smelter would produce 12 non-ferrous metals, including zinc, copper, lead, antimony, gallium and germanium. It would also produce semiconductor-grade sulfuric acid, making the project strategically relevant to metals, chemicals and semiconductor supply chains.

The Korea Zinc Tennessee smelter is significant because it would be the first large-scale domestic zinc refinery built in the US since the 1970s. It also reflects Washington’s effort to rebuild domestic refining capacity for critical minerals and reduce dependence on overseas processing.

Project Crucible is planned as a $7.4bn investment. Korea Zinc announced the project in December in a joint venture with the US commerce and defense departments after acquiring the adjacent East Tennessee and Mid Tennessee mining complexes and the Clarksville smelter from Trafigura-owned Nyrstar.

Project Crucible Targets a Multi-Metal Refining Gap

Project Crucible is designed to process 1.1mn t/yr of raw materials and produce 540,000 t/yr of finished products. Korea Zinc expects to source feedstock mainly from the US and other North American sources.

This feedstock strategy matters because the US has mine supply and scrap flows, but lacks enough large-scale refining and separation capacity for several strategic materials. Project Crucible could help close that midstream gap.

The product mix is especially important. Zinc, copper and lead provide scale, while antimony, gallium and germanium add critical minerals value.

Gallium and germanium are strategically sensitive because they are used in semiconductors, fibre optics, infrared systems, defence electronics and advanced manufacturing. Antimony is also important for flame retardants, ammunition, lead alloys and military applications.

The facility’s semiconductor-grade sulfuric acid output adds another layer of industrial importance. High-purity sulfuric acid is a key chemical input for semiconductor manufacturing and advanced electronics.

Korea Zinc plans to base the facility on its Onsan smelter in South Korea. That gives the project an established technical reference point and strengthens its credibility as a complex multi-metal refining platform.

FAST-41 Status Supports US Industrial Supply Security

FAST-41 coverage gives Project Crucible a more coordinated federal permitting path. The Permitting Council also signed a memorandum of understanding with Tennessee to align federal and state permitting efforts.

The US Department of Defense will primarily oversee permitting for the project. That role underlines the national security importance of domestic critical minerals refining.

Korea Zinc expects construction to begin in 2027. Phased operations are scheduled to start in 2029 with zinc, lead and copper production.

Finished products are expected to move to US customers by rail. This gives the project a domestic logistics route and supports the broader goal of building mine-to-market North American supply chains.

The project fits a wider US strategy. Washington is trying to accelerate permitting, use defence-linked financing and support domestic refining capacity for materials used in semiconductors, defence, energy infrastructure and manufacturing.

For Korea Zinc, the project offers a major entry into US critical minerals processing. For the US, it provides a rare chance to add large-scale refining capacity across both base metals and strategic minor metals.

The Metalnomist Commentary

Project Crucible shows that the US critical minerals challenge is increasingly about refining, not only mining. If Korea Zinc can execute the Tennessee smelter on schedule, it could become one of the most important non-Chinese multi-metal refining assets in North America.

Boliden Garpenberg Zinc Mine Investment Strengthens Long-Term European Zinc Supply

Boliden

Boliden Garpenberg zinc mine investment plans will reinforce one of Europe’s most important zinc supply assets beyond 2030. The Sweden-based metals group will invest SKr4 billion, or about $430 million, in a new hoisting system at Garpenberg to support continued mining of newly identified resources.

The six-year project is designed to sustain production at around 4.5 million tonnes per year. Recent exploration has expanded Garpenberg’s mineral resources and reserves, creating the need for new infrastructure to reach deeper and newly discovered zones.

Boliden Garpenberg zinc mine development matters because Europe needs stable domestic sources of zinc concentrates. Zinc remains essential for galvanizing steel, infrastructure, automotive production, construction, and renewable energy equipment.

Garpenberg Infrastructure Upgrade Supports Deeper Zinc Mining

The new hoisting system will give Boliden better access to deeper ore zones and help protect long-term output from Garpenberg. The mine already holds an environmental permit for up to 4.5 million tonnes per year, although that permit remains under appeal.

The investment could also create a foundation for future expansion. However, Boliden said any further growth would depend on major additional investments and permitting progress.

The project comes as Garpenberg deals with a near-term production disruption. A seismic event and related rockfall activity halted production on 14 March, causing four lost production days so far. Infrastructure inspections have started, and the shutdown is significant because Garpenberg is Boliden’s most profitable mine.

Odda Expansion and Ronnskar Project Deepen Boliden’s Zinc and Smelting Strategy

Boliden’s zinc strategy also includes the long-delayed Odda zinc smelter expansion in Norway. The 150,000 tonne per year expansion is expected to take its first feed within about five days, with first production to follow shortly after.

The Odda zinc smelter expansion is strategically important because it strengthens Europe’s refined zinc capacity. The roaster and acid plant are now in the final stages of hot commissioning after a difficult project cycle.

Boliden is also investing SKr1.5 billion in a demonstration plant for a new cement replacement product at Ronnskar in Sweden. Construction is expected to start in the second half of 2026, with ramp-up in the first half of 2029 and planned capacity of 280,000 tonnes per year. The process is designed to improve metals recovery and move Boliden closer to waste-free smelting.

At Ronnskar, copper cathode capacity is around 230,000 tonnes per year, and ramp-up is planned for the final quarter of this year. Meanwhile, Boliden expects higher copper grades at Aitik and Kevitsa by 2034, along with improved nickel grades at Kevitsa. However, further Kevitsa expansion remains paused because low nickel prices, higher taxes, and tougher environmental rules have weakened the investment case.

The Metalnomist Commentary

Boliden Garpenberg zinc mine investment shows that European metals security depends as much on mine infrastructure as on new discoveries. The Odda and Ronnskar updates also show Boliden’s wider strategy: secure concentrates, expand refined metal capacity, and reduce waste across the smelting chain.

Polymetals Endeavor zinc mine suspension after fatal explosion

Polymetals Resources

Polymetals Endeavor zinc mine suspension follows a fatal underground explosion in New South Wales, Australia. The company halted trading in connection with the Endeavor zinc and silver operation after the incident. As a result, investors and concentrate buyers now face fresh uncertainty around the mine’s restart profile and safety performance. Polymetals Endeavor zinc mine status will depend on the forthcoming incident update and any regulatory response.

Operational restart cut short by fatal incident

Endeavor only restarted earlier this year after several years on care and maintenance. The mine delivered its first saleable zinc and silver-lead concentrates in June, marking a key milestone for Polymetals. In that month, Endeavor processed 36,066dmt of ore at an average head grade of 3.72pc zinc. Therefore the Polymetals Endeavor zinc mine quickly re-emerged as a meaningful producer in the regional concentrate market.

However, the fatal explosion has abruptly interrupted that ramp-up narrative. The trading halt is expected to last up to two days while Polymetals prepares a detailed announcement. Regulators, employees, local communities and customers will scrutinise how quickly operations can resume safely. Any extended outage could force smelters and traders to reassess their zinc and lead concentrate sourcing plans.

Long-term production plans now face new uncertainty

Before the incident, Polymetals outlined ambitious ten-year plans for Endeavor. The company targeted 400,000t of contained zinc, 172,000t of contained lead and 21.4mn oz of contained silver over the first decade of the mine’s restarted life. These volumes would have reinforced the Polymetals Endeavor zinc mine as a long-term pillar of polymetallic supply from New South Wales.

The asset’s history underscores its technical complexity. Previous owner Toho Zinc placed Endeavor on care and maintenance in 2020 because of depleted reserves and high costs at depth. Polymetals acquired the mine in 2023, betting that revised mine planning and capital investment could overcome those challenges. Now, the Polymetals Endeavor zinc mine suspension will likely trigger fresh reviews of ground conditions, access design and cost assumptions.

As a result, the timeline for fully realising Endeavor’s planned output may shift. Additional safety measures, new operating protocols or revised development sequences could increase capital needs. Meanwhile, any delays would tighten regional zinc, lead and silver concentrate availability versus earlier expectations, especially for buyers that had already locked in offtake.

The Metalnomist Commentary

The Polymetals Endeavor zinc mine suspension is a stark reminder that restart stories in deep underground zinc mines carry elevated operational risk. Safety incidents can rapidly reverse production gains and undermine confidence in even carefully staged ramp-ups. For traders and smelters, Endeavor highlights the value of diversified concentrate portfolios and robust contingency planning around legacy assets.