What has the gold price got to do with the zinc price?

Zinc now accounts for only 30 percent of revenue from “Zinc” mines, that is zinc mines in the broadest sense, as polymetallic deposits become proportionally a more important source of zinc and contributor to zinc production.  In some of many of these precious metal dominant polymetallic mines zinc is often not much more than a by-product and will be produced anyway.  The economics of a significant slug of zinc mine production is therefore vulnerable to some greater or lesser extent to a drop in the price of precious metals.  If these precious-metal polymetallic mines become unprofitable to mine because of a lower gold price for example then we lose the associated zinc production. If precious metal prices were to rise and increase ore-value  then this might subsidise the continual production of zinc or even expansion of production from these mines.


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