Irish miner Arcon International Resources has said that the ongoing dull zinc prices may lead to a further reduction in global mine supply, which is expected to lead to further smelter cutbacks due to the shortage of concentrates. Already, a significant shortfall of zinc concentrates is leading to smelter cutbacks, with China having announced smelter reductions of 210,000 metric tons, company chairman Tony O'Reilly Junior added. Underlying consumption for zinc in Asia continues to grow which, combined with smelter cutbacks, is likely to lead to a substantial rebound in prices in the forthcoming months, according to O'Reilly Junior. Until the anticipated strengthening of commodity prices occurs, Arcon will reduce unit operating costs through the expansion of its milling capacity, which will result in Arcon being well positioned to capitalize on higher zinc prices.
NSTL
