Canadian Minerals Yearbook (CMY) - 2008 - Zinc

Zinc


Printable version – PDF (251 kb)

Doug Panagapko

Prepared by the Minerals and Metals Sector,
Natural Resources Canada.

Telephone: 613-992-2667
E-mail: doug.panagapko@nrcan-rncan.gc.ca

HIGHLIGHTS

  • Canada is an important producer and exporter of zinc and zinc products. Zinc metal production in Canada dates from the early 1900s when the Consolidated Mining and Smelting Company of Canada (now Teck Cominco Limited) started production at a small electrolytic zinc plant at Trail, British Columbia. Today, with a smelting capacity of 843 000 t/y from four metallurgical facilities located across the country, Canada produces roughly 7.0% of the world’s total supply of refined zinc.
  • Canada’s newest producer, Xstrata’s Perseverance mine, reached commercial production.
  • In response to declining zinc prices, four Canadian mines closed during the year. Declining industrial output in most regions of the world has been somewhat offset by continued moderate growth in China.
  • Historically high metal inventories should keep zinc prices in the US55¢-65¢/lb range into 2010, when demand is expected to increase.

World Data 2006 2007 2008 2008/07
  (000 t) (% change)
Mine production 10 444 11 129 11 755 5.6
Refined production 10 655 11 356 11 683 2.9
Usage (consumption) 10 971 11 310 11 481 1.6
Refined balance -317 46 202 n.a.
Refined stocks at year-end (1) 546 580 757 n.a.

Source: International Lead and Zinc Study Group.
n.a. Not applicable.
(1) Producer, consumer, and LME.


Zinc Prices 2006 2007 2008
Cash (US¢/lb) 148.27 147.10 85.00
Cash (US$/t) 3 268.81 3 259.90 1 874.70
3 months (US$/t) 3 246.16 3 253.82 1 897.80
15 months (US$/t) 2 816.03 3 011.90 1 943.46
27 months (US$/t) 2 385.91 2 751.27 1 963.43

Source: International Lead and Zinc Study Group.


Canadian Data 2006 2007 2008 2008/07
  (tonnes) (% change)
Mine output (1) 637 956 630 485 682 487 8.2
Zinc refined production 824 464 802 103 764 312 -4.7
Zinc domestic shipments 179 189 171 655 162 621 -5.3
Zinc refined imports 12 277 13 514 8 314 -38.4
Apparent zinc usage (2) 191 466 185 169 170 935 -7.7

Source: Natural Resources Canada.
(1) Zinc content of ores and concentrates produced. (2) Domestic shipments and imports.

INTRODUCTION

Zinc is a relative newcomer to the group of metals discovered and used by society. While the first use of copper pre-dates recorded history and the discovery of tin goes back 5000 years, the first recovery of metallic zinc came much later. The production of metallic zinc was first described in India around 1200 A.D. By 1374, zinc was recognized as a new metal, the eighth to be discovered at that time, and a limited amount of commercial zinc production was under way. Although brass-making had developed much earlier, the zinc in brass was obtained by treating zinc ore to produce zinc vapour, which combined with granulated copper under heat. From India, zinc production was introduced to China sometime around 1600 A.D. and then began to be exported to Europe.

The first full-scale zinc smelting operation outside of Asia started in Bristol, England, about 1743. By the beginning of the 19th century, zinc production was established on the continent of Europe, notably in Belgium and parts of Eastern Europe. In the latter half of the century, large zinc industries developed rapidly in the United States and Germany.

HISTORY OF ZINC MINING IN CANADA

Zinc production in Canada dates back to the First World War when the Consolidated Mining and Smelting Company of Canada began operating a small electrolytic zinc plant at Trail, British Columbia, to help offset a critical wartime shortage of zinc in the United Kingdom. At that time, the Consolidated Mining and Smelting Company of Canada and The Anaconda Copper Mining Company in Montana were pioneering the production of zinc in North America by the electrolytic method.

The ores used at Trail came from the Sullivan mine near Kimberley, B.C., but production was hampered because the complex lead-zinc-iron ore was difficult to treat using existing methods. In 1920, however, the differential flotation method was successfully applied to separate the Sullivan ore into a lead concentrate, a zinc concentrate, and an iron by-product. This marked the beginning of significant zinc production in Canada. Today, the Trail operations are the world’s largest fully integrated lead and zinc smelting and refining complex. Owned and operated by Teck Cominco Limited of Vancouver, the Trail facility has a zinc production capacity of 295 000 t/y.

In Manitoba, the discovery of significant zinc and copper ore with important quantities of gold in 1915 led to the development of the Flin Flon-Snow Lake mining camp, smelter complex, and dedicated power plant in the late 1920s. Since 1930, Hudson Bay Mining and Smelting Co. Limited, now a subsidiary of HudBay Minerals Inc., has owned and operated some 30 mines that have in turn fed the company’s metallurgical complex at Flin Flon. The Flin Flon smelter and refinery complex has undergone significant capital improvements since it first commenced operations in 1930 with the introduction of zinc pressure leach technology in the early 1990s and a new tank house in 2000 that expanded zinc production capacity to 118 000 t/y.

The Kidd Creek orebody near Timmins, Ontario, was discovered in 1963 and Texasgulf Inc. began open-pit mining the deposit in 1966. The Kidd Creek zinc plant started production in 1972. In 1983, Kidd Creek started up a zinc pressure leaching facility. The mine and plant continued operation under Falconbridge until 2006. Today, Xstrata Copper owns and operates the Kidd Creek complex with a zinc metal production capacity of 150 000 t/y.

With the discovery of significant zinc-bearing ores in the Matagami region of northern Quebec in the late 1950s and early 1960s, Noranda Inc. began looking at options to build an electrolytic zinc plant. Construction began at Valleyfield, Quebec, west of Montréal, in 1962 and Canadian Electrolytic Zinc (CEZ) was brought into production in 1963. Xstrata Zinc has a 25% interest in the CEZ refinery held through the Noranda Income Fund. Plant capacity has increased steadily from its original 64 000 t/y at the time of opening to 280 000 t/y today.

CANADIAN PRODUCTION FACILITIES

In 2008, Canadian mines produced 682 487 t of zinc in concentrate, compared to 630 485 t in 2007, an 8.2% increase (Table 1). Refined metal production for 2008 was 764 312 t, compared to 802 103 t in 2007, a decrease of 4.7%. Table 4 shows zinc production and exports for the period 1988-2008.

Zinc is produced at eleven mines located in seven provinces (Figure 1). During the year, three new zinc mines started production. The trend in total Canadian zinc mine production for the period 1998-2008 is shown in Figure 2. Zinc metal is produced from domestic and foreign concentrates at four metallurgical sites in Quebec, Ontario, Manitoba, and British Columbia (Table 8). Refined zinc metal production for the period 1998-2008 is shown in Figure 3. Zinc oxide is produced at one plant located in Brampton, Ontario. Statistics on exports and imports of zinc concentrates, metal, and semi-fabricated products are provided in Table 2.

The following is a summary of Canadian zinc mines and metal production facilities in operation during 2008.

Figure 1 - Zinc Producers in Canada, 2008

Figure 2 - Canadian Mine Production of Zinc, 1998-2008

Figure 3 - Canadian Refined Zinc Metal Production, 1998-2008

Newfoundland and Labrador

The Duck Pond mine, owned by Teck Cominco Limited, is located 90 km south of Buchans. During 2008, the mine produced 445 000 t of ore grading 4.9% zinc. A total of 19 000 t of zinc in concentrate was produced during the year (2008 Annual Report).

Nova Scotia

Acadian Mining Corporation commenced production at the Scotia open-pit mine in May 2007. The mine is situated at Gays River, 65 km north of Halifax. Metal production in 2008 was 27 729 t of zinc concentrate and 8535 t of lead concentrate (MD&A, December 2008). By year-end, the company had reduced staff at the mine in response to the dramatic drop in zinc and lead prices.

New Brunswick

Xstrata Zinc Canada owns the Brunswick zinc and lead mine located 21 km southwest of Bathurst. In 2008, the mine produced 3.31 Mt of ore, down from 3.43 Mt in 2007, resulting in the production of 242 478 t of zinc in concentrate, down from 251 795 t in 2007 (Production Report, December 2008). The mine is expected to close in 2010 or 2011 due to the depletion of ore reserves.

Blue Note Mining Inc. officially re-opened the Caribou and Restigouche lead-zinc mines located west of Bathurst in June 2008. In October, the company announced plans to close both operations due to falling zinc and lead prices. The Caribou concentrator milled 819 452 t of ore grading 5.26% zinc and 2.57% lead in 2008 (Fourth Quarter 2008 Report). Total metal production was 38 000 t of zinc in concentrate and 19 700 t of lead in concentrate.

Quebec

Zinc is produced at the LaRonde mine, owned by Agnico-Eagle Mines Ltd; the mine is situated about 60 km west of Val-d’Or. It is a gold-silver-copper-zinc orebody comprising massive to disseminated sulphide lenses within a regional shear zone. In 2008, the mine produced 65 753 t of zinc in concentrate from 2.63 Mt of ore milled at a grade of 3.27% zinc, whereas in 2007 the mine produced 71 577 t from 2.67 Mt of ore milled (2008 Annual Report).

Xstrata Zinc Canada commenced commercial mining of the Perseverance deposit at Matagami in July 2008. The capital cost of the project was $130 million. The mine is accessed by ramp and the ore is being processed at Xstrata’s 2600-t/d Matagami mill. During the year, the mine produced 511 000 t of ore resulting in the production of 60 265 t of zinc in concentrate. At full production, the mine is expected to produce about 115 000 t/y of zinc in concentrate over a five-year mine life.

The Langlois mine owned by Breakwater Resources Ltd., which opened in July 2007, was put on care and maintenance in November 2008. The mine is located 213 km northeast of Val-d’Or. Production in 2008 was 514 444 t milled at an average grade of 8.1% zinc, producing 38 620 t of zinc in concentrate, up from 28 327 t in 2007.

The CEZ zinc plant is located in Salaberry-de-Valleyfield, just west of Montréal, and is owned by the Noranda Income Fund. Xstrata plc owns 25% of the fund units. The rated capacity of the plant is 280 000 t of refined zinc. In 2008, the plant produced 264 231 t of zinc metal from 508 000 t of zinc concentrate processed, compared to 262 133 t of zinc metal produced in 2007. The higher production was attributed to higher zinc concentrate grades and higher recoveries.

Ontario

Xstrata Copper operates the Kidd Creek copper-zinc mine, located about 25 km north of Timmins, as well as a copper smelter and zinc hydrometallurgical plant. The orebody was discovered in 1963 and open-pit mining commenced in 1966. Mining was later converted to underground and the mine is presently developed to a depth of 2773 m (9100 ft). The Kidd Creek mine produced 2.35 Mt of ore containing 116 300 t of zinc in concentrate in 2008.

The zinc hydrometallurgical plant located at Hoyle, 25 km east of Timmins, has a capacity of 150 000 t/y. In 2008, the plant produced 121 193 t of refined zinc, down from 142 549 t in 2007 (Production Report, December 2008). Metal production was negatively affected by a six-week labour dispute.

HudBay Minerals Inc. owns a zinc oxide production facility in Brampton. It is the third largest producer of zinc oxide in North America with a production capacity of 45 000 t/y. Production for 2008 was 33 982 t (consuming 26 155 t of zinc metal).

Manitoba

HudBay Minerals Inc. operates an integrated mining and smelting business through its wholly owned subsidiary, Hudson Bay Mining and Smelting Co., Limited (HBMS). It operate the 777 and Trout Lake mines and a smelter complex in Flin Flon, situated about 630 km northwest of Winnipeg. It also owns the Chisel North mine, located in Snow Lake 120 km east of Flin Flon. In addition, the company owns the Balmat mine in northern New York state, which closed in August due to higher-than-expected operating costs and falling zinc prices. The Flin Flon concentrator produced 155 132 t of zinc concentrates from ore mined at 777 and Trout Lake. The Snow Lake concentrator produced 43 812 t of zinc concentrates from ore mined at the Chisel North mine (2008 Year-End MD&A). The 777 mine produced 1.47 Mt of ore grading 4.37% zinc and 2.61% copper in 2008 while the Trout Lake mine produced 776 205 t of ore grading 3.7% zinc and 1.93% copper. The Chisel North mine produced 325 156 t of ore grading 7.4% zinc.

The zinc hydrometallurgical plant is situated at Flin Flon and employs two-stage pressure leaching and electrolysis technology to produce special high grade zinc. It has an annual capacity of 118 000 t of refined zinc metal. The plant produced 112 955 t of refined zinc in 2008, up from 110 520 t in 2007. This total can be broken down to 102 993 t from HudBay concentrates and 9962 t from purchased concentrates. Taking into account metal derived from the Balmat mine, the company produced 125 323 t of refined zinc in 2008, down slightly from 2007.

British Columbia

The Myra Falls zinc mine is owned and operated by Breakwater Resources Ltd. It is located within Strathcona Provincial Park on Vancouver Island, about 65 km southwest of Campbell River. On October 28, the company announced the temporary closure of the mine due to economic and market conditions. Production in 2008 was 35 762 t of zinc in concentrate (up from 29 845 t in 2007) from 592 072 t of ore milled.

The integrated zinc and lead smelting and refining complex at Trail, owned by Teck Cominco Limited, has a capacity of 295 000 t/y of refined zinc. The complex produces refined zinc and lead, as well as gold, silver, cadmium, germanium, indium, sulphuric acid, and fertilizers. In 2008, production at Trail was 269 900 t of zinc, down from 291 900 t in 2007 (Fourth Quarter 2008 Report). In November, the company announced a reduction in zinc production of 4000-5000 t per month in response to poor market conditions.

RECENT DEVELOPMENTS

Slam Resources Ltd. continues to explore its Nash Creek property located 50 km northwest of Bathurst, New Brunswick. The deposit consists of massive sulphides hosted in a bi-modal volcanic-sedimentary sequence, possibly of the SEDEX (sedimentary exhalative) type. A National Instrument 43-101 (NI 43-101) report issued in July 2007 defined indicated resources of 3.24 Mt grading 4.67% zinc and 0.80% lead, and inferred resources of 2.69 Mt grading 2.65% zinc and 0.77% lead. The company expects to complete a new resource calculation that would include all drilling done to the end of 2008. The deposit has a strike length of 1400 m, extends over 300 m, and is up to 45 m thick.

Virginia Mines Inc. continues to obtain excellent drill results from its 100%-owned Coulon property situated 680 km northeast of Matagami, Quebec. Virginia purchased Breakwater’s 50% interest in the property in December. Several lenses of copper-zinc mineralization have been delineated thus far. Of note in recent drilling is the further delineation of the 08 Lens, which has been extended to a vertical depth of at least 500 m and has returned intersections such as 5.7 m grading 12.0% zinc and 0.86% copper. In addition, drilling of the 9-25 Lens returned 6.3% zinc and 1.5% copper over 11.6 m at a vertical depth of over 600 m. This lens extends vertically for over 450 m and 275 m laterally.

Xstrata Zinc Canada and Donner Metals Ltd. continue to obtain excellent results from drilling at the Bracemac-McLeod deposit near Matagami, Quebec. The property is located only 5 km from Xstrata’s 2600-t/d Matagami Lake mill complex. The mill is currently processing ore from Xstrata’s Perseverance mine. A series of stacked massive sulphide lenses are being tested that occur along a marker horizon that was the site of 10 past producing mines in the Matagami camp, including the large Matagami Lake mine, which produced 25.6 Mt at 8.2% zinc and 0.56% copper. Xstrata is conducting a scoping study on the deposit.

Xstrata Copper announced an investment of $121 million to deepen the underground Kidd Creek mine in Timmins, Ontario, from the present base of Mine D at 9100 ft to 9500 ft, extending the mine life to 2017. This expansion will provide an additional 3.4 Mt at a grade of 1.48% copper, 6.22% zinc, 0.28% lead, and 80 g/t silver.

HudBay Minerals Inc. released a NI 43-101 compliant mineral resource estimate for its Lalor Lake deposit, located approximately 3 km from the company’s Chisel North mine near Snow Lake, Manitoba. The discovery hole intersected 23.9 m grading 13.2% zinc and 0.19% copper. The resource estimate is based upon the drilling of 40 drill holes. The deposit is estimated to contain 3.4 Mt of indicated resources at 8.82% zinc and 13.2 Mt of inferred resources at 8.19% zinc. The mineralization is found in a series of stacked lenses of zinc-rich polymetallic sulphides between 570 m and 1170 m in depth. Recent drill results indicate the presence of gold-rich horizons within the deposit.

Redcorp Ventures Ltd. continued to work on infrastructure improvements at its Tulsequah Chief base-metal deposit in northwestern British Columbia. The company is proceeding with finalization of key permitting functions. A NI 43-101 compliant resource estimate shows 5.37 Mt of probable reserves grading 1.40% copper, 6.33% zinc, 1.20% lead, and 93 g/t silver. The deposit also contains indicated resources of 5.81 Mt grading 1.43% copper, 6.58% zinc, 1.25% lead, and 97 g/t silver.

Selwyn Resources Ltd. continues to explore its large land position in the Howard’s Pass area of east-central Yukon. The company reports a new global mineral resource inventory comprising 154.3 Mt of indicated resources grading 5.35% zinc and 1.86% lead, and 231.5 Mt of inferred resources at 4.54% zinc and 1.42% lead (Third Quarter 2008 Report). Contained within this global resource is an underground target mineral resource estimate for four separate deposits that contain 16.1 Mt of indicated resources grading 10.25% zinc and 4.23% lead, and 23.2 Mt of inferred resources at 8.8% zinc and 2.8% lead. The company continues to work on various permitting and consultative issues.

In July, Yukon Zinc Corporation was purchased by Jinduicheng Molybdenum Group Ltd. and Northwest Nonferrous International Investment Company Ltd. after receiving approval from the company’s shareholders and from the Supreme Court of British Columbia. Jinduicheng is a large molybdenum mining and smelting enterprise based in Shaanxi Province, China. Northwest Nonferrous, based in Xian City, Shaanxi Province, China, is a state-owned mining and exploration company. Yukon Zinc’s main asset is the Wolverine zinc deposit located 175 km northwest of Watson Lake in the Yukon. The volcanogenic massive sulphide (VMS) deposit contains proven and probable reserves of 5.15 Mt grading 9.71% zinc, 0.93% copper, 1.26% lead, 284.2 g/t silver, and 1.36 g/t gold. Once in production at a daily rate of 1700 t, the mine is expected to produce 53 400 t of zinc in concentrate and 5860 t of lead in concentrate annually over a 10-year mine life.

Canadian Zinc Corporation carried out permitting activities to advance its Prairie Creek project located in the western Northwest Territories. The property consists of a partially developed mine with a 1000-t/d mill and related infrastructure. Published resources include measured and indicated resources of 5.84 Mt grading 10.7% zinc, 9.9% lead, and 161 g/t silver, as well as inferred resources of 5.5 Mt at 13.5% zinc, 11.43% lead, and 215 g/t silver (October 2007 Technical Report). These resources are contained within a main quartz vein, stockwork, and stratabound zones. The project is environmentally sensitive as it lies within the Nahanni River watershed and is close to the Nahanni National Park Reserve. During the year, the company signed memoranda of understanding with two First Nations and with Parks Canada with the intent of advancing the project to a production decision.

Tamerlane Ventures Inc. is proceeding with a development plan for its Pine Point area lead-zinc properties in the Northwest Territories. The company recently issued a NI 43-101 reserve report that has calculated proven and probable reserves of 7.8 Mt grading 6.16% zinc and 3.01% lead, as well as measured and indicated resources of 8.0 Mt grading 2.26% zinc and 1.13% lead. The reserves are contained within six separate deposits over a distance of 13 km.

Sabina Silver Corporation owns the Hackett River silver-zinc deposit located in western Nunavut. A 2007 preliminary economic assessment announced an open-pit indicated resource of 25.6 Mt grading 4.07% zinc, 0.58% lead, and 126.4 g/t silver, and an inferred resource of 3.4 Mt grading 2.57% zinc, 0.37% lead, and 99.7 g/t silver. The company is proceeding with water licence and other permits as part of the environmental assessment process. The economic assessment estimates an operating mine could produce 72 000 t/y of zinc, 8100 t/y of lead, and 12.4 million oz/y of silver over a 13-year mine life at a milling rate of 10 000 t/d. The deposit is located 75 km from tidewater and would require a road and port to be built to supply the mine and ship out concentrates.

WORLD PRODUCTION

According to the International Lead and Zinc Study Group (ILZSG), world zinc mine production for 2008 was 11.76 Mt, up from 11.14 Mt the previous year, with the main increases coming from Bolivia, Peru, China, and Canada (Table 5). World refined zinc metal production was 11.69 Mt, up from 11.35 Mt in 2007, mostly due to increases in China and India (Table 6). In terms of mine production, Canada ranked fifth behind China, Peru, Australia, and the United States. The top five zinc metal-producing countries in 2008 were China, Canada, South Korea, India, and Japan. The top five zinc mining companies are Xstrata, Teck Cominco, Glencore, Zinifex, and Hindustan Zinc, which together account for 40% of world contained metal production. The top five zinc mines in terms of zinc in concentrate production in 2008 were: Red Dog in Alaska (515 000 t), Century in Australia (514 000 t), Rampura Agucha in India (489 000 t), Mt Isa in Australia (283 000 t), and Antamina in Peru (247 000 t). Figure 4 shows world zinc mine production for the period 2006-08 while Figure 5 shows refined metal production for the same period. The growth in mine output from China was 4.5% in 2008, compared to 18.3% for 2007.

Figure 4 - World Zinc Mine Production, 2006-08

Figure 5 - World Zinc Metal Production, 2006-08

INTERNATIONAL DEVELOPMENTS

OZ Minerals was formed in 2008 by the merger of Oxiana Limited and Zinifex Limited. The company has operating mines in Australia and Asia, and has an extensive portfolio of mineral prorperties around the world. In Canada, the company owns several zinc deposits, including the Izok Lake, High Lake and Hood River deposits, all located in the western Northwest Territories. The Izok Lake deposit contains indicated resources of 14.4 Mt at a grade of 12.9% zinc, 2.5% copper, and 1.3% lead. The High Lake deposit has an indicated resource of 17.3 Mt at 3.4% zinc, 2.3% copper, 0.3% lead, and 76 g/t silver.

Due to the rapidly declining zinc prices, several mining operations were closed during the year, including:

  • Lennard Shelf in Western Australia (Teck, Xstrata);
  • Pend Oreille in Washington State, United States (Teck);
  • Gordonsville in Tennessee, United States (Strategic Resource Acquisition Corp.);
  • Balmat in New York, United States (HudBay Minerals Ltd.);
  • Aljustrel in Portugal (Lundin Mining); and
  • the Coy, Young and Immel mines in Tennessee, United States (East Tennessee Zinc Company) (announced for 2009 closure).

Production cuts have also been announced at numerous operating mines, notably:

  • Perilya Resources will cut output at its Broken Hill, Australia, mining complex resulting in a loss of 35 000 t/y of zinc;
  • OZ Minerals will cut zinc production at its Golden Grove, Australia, mine by 55 000 t/y in 2009 and reduce production by 20 000 t/y at its Century mine in Australia; and
  • Lundin Mining plans to cease zinc production at the Neves-Corvo copper-zinc mine in Portugal, representing 26 000 t/y of zinc.

Farallon Resources Ltd. is proceeding with the development of its G-9 project at Campo Morado, Mexico, with full production at a rate of 1500 t/d slated for early 2009. The mine is scheduled to produce 26 500 t of zinc, 1300 t of lead, and 1.5 million oz of silver per year. The deposit contains measured and indicated resources of 2.18 Mt grading 11.0% zinc, 1.32% lead, and 209.2 g/t silver, as well as inferred resources of 1.60 Mt grading 9.0% zinc, 1.24% lead, and 178.0 g/t silver using a 5% zinc cut-off.

Australia's Aim Resources has suspended its Perkoa zinc project in Burkina Faso, West Africa. The deposit contains reserves of 6.3 Mt grading 14.5% zinc.

Terramin Australia Limited commenced production at its Angas base-metal mine located 60 km south of Adelaide. The mine is expected to produce 45 000 t/y of zinc concentrates and 16 000 t/y of copper-lead concentrates.

In December, Perilya Limited entered into an agreement and strategic partnership with Shenzhen Zhongjin Lingnan Nonfemet Co. wherein Zhongjin would purchase shares in Perilya, raising A$45 million. Perilya owns the historic Broken Hill lead-zinc mining complex in New South Wales.

Strategic Resource Acquisition Corp. announced the closure of the Gordonsville mine in Tennessee in October due to declining metal prices and a lack of sufficient financing. The mid-Tennessee mining complex included the former Gordonsville, Elmwood, and Cumberland mines, and had begun operation in April 2008. Production levels were expected to reach 3000 t/d from the Gordonsville and Cumberland mines. The company was also exploring the possibility of installing a circuit to recover valuable germanium and gallium, which it was selling to a third party in the form of a leachate.

USES

The greatest use for zinc is as a coating for iron and steel products to make them resistant to rust and corrosion. The application of a zinc coating, known as galvanizing, is accomplished electrolytically or by hot-dip methods. Galvanizing accounts for about 58% of the worldwide use of zinc.

The most commonly galvanized products are sheet and strip steel, tube and pipe, and wire and wire rope. The automobile industry is the largest user of galvanized steel. The desire to reduce weight and improve fuel efficiency has led to the increased use of galvanized steel by the automotive industry to protect the thinner gauges of steel from corrosion. Both hot-dipped and electro-galvanized steel are used, the thicker coating of hot-dipped steel giving more corrosion protection to unexposed surfaces and the thinner coating of electro-galvanized steel providing a smoother finish for exposed, painted surfaces.

Galvanized sheet and strip steel are also widely used by the construction industry for roofing and siding, and for heating and ventilation ducts, as well as for many other applications. Nails and other building materials are often hot-dip galvanized. Zinc and zinc-aluminum thermally sprayed coatings are used for the long-term corrosion protection of large steel structures such as bridges and hydro-electric transmission towers.

Another important use of zinc is in the manufacture of a vast range of die-cast products. Because it has a relatively low melting point and is very fluid, zinc diecast is easy to pour when melted. Therefore, it is well suited to rapid, assembly-line die-casting, particularly to produce small and intricate shapes.

A major use of die castings is in the automobile industry as trim pieces, grills, door and window handles, carburetors, pumps, and other components. However, with the trend toward lighter, more energy-efficient cars, zinc demand for this purpose has declined in recent years. Other familiar zinc die castings include small electrical appliances, business machines and other light equipment, tools, and toys.

Zinc is also an essential ingredient of brass, which is essentially an alloy of copper and zinc with the proportion of zinc ranging from 5 to 40%. The zinc brasses have good physical, electrical, and thermal properties, and are corrosion resistant. They are used in plumbing, heat exchange equipment, and a wide range of decorative hardware, to name a few applications. Rolled zinc metal is a basic component in dry-cell batteries, and zinc oxide is used as a catalyst in the manufacture of rubber and as a pigment in white paint. It is also used in agricultural products, cosmetics, and medicinal products.

Table 7 and Figure 6 show a breakdown of worldwide zinc use by geographic region for the period 2006-08, according to data from the ILZSG. Of note, zinc consumption in China increased 11.5% for the current year, compared to a 15.5% increase for 2007, while consumption in Europe declined by 7.9% in 2008. Table 3 and Figure 7 show a breakdown of zinc use in Canada for the period 2005-07. In Figure 7, other products include rolled and ribbon zinc and zinc oxides. The overall trend in total world zinc consumption for the period 1992-2008 is shown in Figure 8.

Figure 6 - World Refined Zinc Use, 2006-08

Figure 7 - Canada, Zinc Use, 2005-07

Figure 8 - World Zinc Usage, 1992-2008

HEALTH AND ENVIRONMENT

Zinc plays an important role as a micro-nutrient in the development and health of a variety of plants and animals. In humans, zinc is a key element in the function of more than 200 enzymes, for the stabilization of DNA and the expression of genes, and for the transfer of nerve signals.

The human body contains 2-3 g of zinc. The recommended daily zinc intake is 10 mg for children, 12 mg for adult women, and 15 mg for adult men. Daily intake is not only dependent on food, but also on gender, age, and general health status. Growing infants, children, adolescents, women in pregnancy, and the elderly have a higher zinc requirement.

Food is the primary source of zinc for humans with only a small part coming from drinking water. Some dietary sources of zinc include red meat, nuts, poultry, and milk products. Zinc deficiency is the most common micro-nutrient deficiency affecting many agricultural areas in Asia, Africa, and the Middle East. The World Health Organization attributes 800 000 deaths worldwide each year to zinc deficiency. Zinc in fertilizers can significantly enhance the quality and yield of crops.

INTERNATIONAL LEAD AND ZINC STUDY GROUP

The International Lead and Zinc Study Group (ILZSG) is an intergovernmental organization that regularly brings together 30 member countries in an international forum to exchange information on lead and zinc. Particular attention is given to providing regular and frequent information on supply, demand, and the outlook for lead and zinc prices and markets.

The Study Group, headquartered in Lisbon, Portugal, represents most of the world’s major lead- and zinc-producing and using nations. The Group has an extensive information-gathering and dissemination role, and acts as an effective mechanism for increasing market transparency related to the production, use, and trade of lead and zinc. The Group is also an important forum for communication among governments, among industry, and between governments and industry. It holds a general session each year in October.

More information about the Group’s activities can be obtained from its web site at www.ilzsg.org/static/home.aspx.

PRICES AND STOCKS

Figure 9 shows average monthly London Metal Exchange (LME) settlement prices for the period 2004-08, along with zinc metal stocks. Total stocks, comprising producers, consumers, and LME stocks, stood at 757 000 t at the end of 2008. Producer and consumer stocks ended the year at 504 000 t, up 6% from the previous year. LME metal stocks increased substantially from 89 000 t at the end of 2007 to 253 000 t in December 2008. Monthly average settlement prices on the LME during 2008 decreased substantially from US$2342/t to US$1102/t. Annual average zinc prices for 1987-2008 are shown in Figure 10. Between October 1991 and June 2003, there was little fluctuation in price with an average for the period of US$1036/t (US$0.47/lb). Figure 11 shows the LME daily official cash settlement prices for 2008. The price started the year at US$1.08/lb, reached a high on March 6 of US$1.28/lb, and ended the year at US$0.51/lb. Table 9 shows the monthly average zinc price for 2007 and 2008. The yearly average price dropped 42% from the 2007 level.

Figure 9 - Zinc Prices and Stocks, 2004-08
Figure 10 - Average Cash Settlement Zinc Prices, 1987-2008
Figure 11 - LME Daily Official Cash Settlement Prices, 2008

OUTLOOK

There were numerous production cutbacks and closures of zinc mines during the second half of 2008. It is expected that, with prices still near historic lows, more production cuts may be announced during 2009. As well, zinc inventories are still on the rise and demand remains soft. Prices will not show any long-term signs of recovery until metal stocks are reduced, which requires demand to increase. Difficulties in the automobile and construction sectors, which account for over 70% of zinc use, will not be resolved until probably 2010.

The ILZSG predicts that global zinc mine output for 2009 will be 11.08 Mt, a 6% reduction from the previous year. Smelters have responded to low prices by announcing reductions in output for 2009. Refined metal production, according to the ILZSG, should be 11.18 Mt, a decrease of 4%. The ILZSG expects that refined zinc metal usage will be 10.92 Mt in 2009, a decline of 4.9%. As a result of increased supply, there is expected to be a net surplus of 260 000 t of zinc in 2009, which should further weaken prices.

Zinc prices are expected to vary within the US$1100-$1550/t (US$0.50-$0.70/lb) range during 2009. If world metal stocks continue to be reduced, and if miners and smelters continue to operate at below capacity, prices in 2010 could recover to the US$1750/t (US$0.80/lb) range.

OTHER SOURCES OF INFORMATION ON ZINC

American Galvanizers Association
www.galvanizeit.org
American Zinc Association
www.zinc.org
International Zinc Association
www.iza.com
London Metal Exchange
www.lme.co.uk
U.S. Geological Survey
http://minerals.usgs.gov/minerals/pubs/commodity/zinc/
World Bureau of Metal Statistics
www.world-bureau.com
Zinc Information Centre
www.zincinfocentre.org
North American Die Casting Association
www.diecasting.org

Notes: (1) For definitions and valuation of mineral production, shipments and trade, please refer to Chapter 58. (2) Information in this review was current as of May 29, 2009. (3) This and other reviews, including previous editions, are available on the Internet at www.nrcan-rncan.gc.ca/mms-smm/busi-indu/cmy-amc/com-eng.htm.

Note to Readers

The intent of this document is to provide general information and to elicit discussion. It is not intended as a reference, guide or suggestion to be used in trading, investment, or other commercial activities. The author and Natural Resources Canada make no warranty of any kind with respect to the content and accept no liability, either incidental, consequential, financial or otherwise, arising from the use of this document.


TARIFFS
  Canada United States EU Japan
Item No. Description MFN GPT USA Canada Conventional Rate (1) WTO (2)
2603.00.30 Copper ores and concentrates: zinc content Free Free Free Free Free Free
2607.00.30 Lead ores and concentrates: zinc content Free Free Free Free Free Free
2608.00.30 Zinc ores and concentrates: zinc content Free Free Free Free Free Free
2620.11 Slag, ash and residues (other than from the manufacture of iron or steel) containing metals, arsenic or their compounds: containing mainly zinc: hard zinc spelter Free Free Free Free Free Free
2620.19 Slag, ash and residues (other than from the manufacture of iron or steel) containing metals, arsenic or their compounds: containing mainly zinc: other Free Free Free Free Free Free
2817.00 Zinc oxide; zinc peroxide Free-5.5% Free Free Free 5.5% 4.3%
2827.39.40 Chlorides, chloride oxides and chloride hydroxides; bromides and bromide oxides; iodides and iodide oxides: other chlorides: other: of zinc Free Free Free Free 5.5% 3.9%
7901.11 Unwrought zinc: zinc, not alloyed: containing by weight 99.99% or more of zinc Free Free Free Free 2.5% Free-
4.30 yen/kg
7901.12 Unwrought zinc: zinc, not alloyed: containing by weight less than 99.99% of zinc Free Free Free Free 2.5% Free-
4.30 yen/kg
7901.20 Unwrought zinc: zinc alloys Free Free Free Free 2.5% Free-
4.30 yen/kg
7902.00 Zinc waste and scrap Free Free Free Free Free Free
7903.10 Zinc dust, powders and flakes: zinc dust Free Free Free Free 2.5% 3%
7903.90 Zinc dust, powders and flakes: other Free Free Free Free 2.5% 3%
7904.00 Zinc bars, rods, profiles and wire Free Free Free Free 5% 3%
7905.00 Zinc plates, sheets, strip and foil Free Free Free Free 5% 3%
7907.00 Other articles of zinc Free-3% Free-3% Free Free 5% 3%

Sources: Canadian Customs Tariff, effective January 2009, Canada Border Services Agency; Harmonized Tariff Schedule of the United States, 2009; Official Journal of the European Union (Tariff Information), September 19, 2008 edition; Customs Tariff Schedules of Japan, 2009.
(1) The customs duties applicable to imported goods originating in countries that are Contracting Parties to the General Agreement on Tariffs and Trade or with which the European Community has concluded agreements containing the most-favoured-nation tariff clause shall be the conventional duties shown in column 3 of the Schedule of Duties. (2) WTO rate is shown; lower tariff rates may apply circumstantially.


TABLE 1.
CANADA, TOTAL ZINC PRODUCTION BY PROVINCE, 2006-08
  2006 2007 2008 (p)
(tonnes) ($000) (tonnes) ($000) (tonnes) ($000)
PRODUCTION
(All Forms) (1)            
Newfoundland and Labrador 16 593 57 812 18 771 37 843
Nova Scotia 4 934 17 188 13 665 27 548
New Brunswick 260 045 943 704 244 251 850 969 224 347 452 282
Quebec 94 944 344 552 102 883 358 444 136 191 274 561
Ontario 107 842 391 358 89 700 312 513 110 486 222 739
Manitoba 105 251 381 957 105 602 367 916 98 299 198 172
Saskatchewan 541 1 964
British Columbia 32 858 119 242 30 151 105 047 27 416 55 271
Total 601 481 2 182 776 594 113 2 069 890 629 175 1 268 417
Mine output (2) 637 956 . . 630 485 . . 682 487 . .
Refined (3) 824 464 . . 802 103 . . 764 312 . .

Sources: Natural Resources Canada; Statistics Canada.
– Nil; . . Not available; (p) Preliminary.
(1) New refined zinc produced from domestic primary materials (concentrates, slags, residues, etc.) plus estimated recoverable zinc in ores and concentrates shipped for export. (2) Zinc content of ores and concentrates produced. (3) Refined zinc produced from domestic and imported ores.
Note: Numbers may not add to totals due to rounding.


TABLE 2.
CANADA, ZINC TRADE, 2006-08
Item No. 2006 2007 2008(p)
(tonnes) ($000) (tonnes) ($000) (tonnes) ($000)
EXPORTS
2603.00.30 Zinc content in copper  
India 1 2
2607.00.30 Zinc content in lead
China 50 221
United States 31 12
Total 31 12 50 221
2608.00.30 Zinc content in zinc ores and concentrates
Belgium 26 717 66 131 35 671 105 840 69 484 90 160
Norway 6 540 15 566 9 375 21 935 35 364 40 872
China 31 238 39 914
Spain 11 738 21 560 33 944 84 164 42 336 36 171
Poland 18 435 40 112 8 575 28 446 15 621 34 812
Finland 26 564 20 613
South Korea 17 246 50 868 11 432 19 815 23 692 19 887
Japan 17 838 32 385 17 199 38 365 9 116 10 047
Other countries 10 913 37 615 12 815 31 786 23 613 25 655
Total 109 427 264 237 129 011 330 351 277 028 318 131
2620.11 Ash and residues containing hard zinc spelter
Germany 432 305
Belgium 26 21
Other countries 811 482
Total 811 482 458 326
2620.19 Ash and residues containing mainly zinc, n.e.s.
United States 11 302 12 816 11 631 14 642 8 293 7 725
Malaysia 128 409 379 658 190 309
Norway 158 251
Belgium 180 171
Other countries 20 39 325 569 23 41
Total 11 450 13 264 12 335 15 869 8 844 8 497
2817.00 Zinc oxide; zinc peroxide
United States 49 093 145 195 47 510 169 966 40 404 97 099
Germany 1 106 2 586 835 1 497 1 217 4 225
Brazil 1 000 2 548 1 368 3 631 1 100 2 924
United Kingdom 219 465 466 962 810 2 332
France 971 2 438 1 488 3 815 530 1 604
Egypt 370 849 761 1 790 545 1 433
Mexico 85 140 170 368 372 1 302
India 372 1 144 380 436 437 1 119
Sweden 6 22 496 1 447 421 1 042
Other countries 1 610 3 401 1 659 3 666 1 117 2 840
Total 54 832 158 788 55 133 187 578 46 953 115 920
2827.36 Other chlorides: of zinc
Chile 4 3
United States 8 28
Total 12 31
2833.26 Zinc sulphate
Cuba 2 3
Netherlands . . . . . .
United States 5 129 3 503
Total 5 131 3 506
7901.11 Zinc, not alloyed, unwrought, containing by weight 99.99% or more of zinc
United States 458 382 1 201 985 442 871 1 451 127 356 412 784 917
Taiwan 10 562 36 167 2 721 10 497 4 393 9 596
Malaysia 6 542 22 521 4 766 16 606 4 017 7 018
Japan 3 979 14 956 2 618 5 614
North Korea 2 647 5 158
Hong Kong 3 556 12 215 2 401 8 507 2 044 4 405
South Korea 1 739 4 239
Belgium 1 660 8 272 6 093 21 555 1 688 4 134
Philippines 290 765 1 379 6 576 1 415 3 251
Israel 2 793 8 714 2 6 1 441 3 031
Costa Rica 683 1 980 787 2 005
Other countries 7 427 19 808 6 298 22 909 609 1 390
Total 491 212 1 310 447 471 193 1 554 719 379 810 834 758
7901.12 Zinc, not alloyed, unwrought, containing by weight less than 99.99% of zinc
United States 104 718 309 196 119 727 415 704 206 419 457 317
Malaysia 871 3 049 2 598 10 069 4 898 10 748
China 3 793 10 015 2 847 11 437 2 572 4 376
Taiwan 4 301 15 431 207 909 1 759 3 898
Indonesia 3 688 13 902 1 744 6 647 1 601 3 434
Philippines 2 439 8 669 2 562 9 674 1 387 3 199
Japan 1 517 3 706 2 187 8 103 310 854
Other countries 14 427 52 814 7 906 29 928 713 1 308
Total 135 754 416 782 139 778 492 471 219 659 485 134
7901.20 Zinc alloys, unwrought
China 35 189 1 3 4 584 10 277
Hong Kong 2 991 7 141
Thailand 1 025 2 232
United States 668 2 479 596 2 321 430 1 140
Other countries 75 219 289 1 152 269 514
Total 778 2 887 886 3 476 9 299 21 304
7902.00 Zinc waste and scrap
United States 11 883 18 213 12 839 19 979 10 631 12 729
Netherlands 195 360
India 327 380 415 981 259 345
Other countries 6 437 10 438 106 230 233 350
Total 18 647 29 031 13 360 21 190 11 318 13 784
7903.10 Zinc dust
United States 6 263 26 772 6 057 29 570 6 951 21 307
Italy 23 131 166 746 126 399
Russia 66 214
Other countries 144 450 183 636 20 67
Total 6 430 27 353 6 406 30 952 7 163 21 987
7903.90 Zinc powders and flakes
United States 12 615 48 792 11 946 58 582 10 595 28 780
Belgium 577 1 888 738 2 744 510 1 100
Hong Kong 136 792 108 431
Switzerland 61 254 188 647 124 295
Other countries 189 784 47 189 59 213
Total 13 442 51 718 13 055 62 954 11 396 30 819
7904.00 Zinc bars, rods, profiles and wire
United States 197 1 274 169 751 60 498
Hong Kong 24 89
Thailand 28 125 26 93 8 28
Other countries 60 267 96 205 12 49
Total 285 1 666 291 1 049 104 664
7905.00 Zinc plates, sheets, strip and foil
Thailand 3 17
United States 2 34 6 61 . . . 7
Other countries 75 168 3 13
Total 77 202 9 74 3 24
7906.00 Zinc tubes, pipes, and tube or pipe fittings (for example, couplings, elbows, sleeves)
United States 1 572 10 921
Other countries 12 110
Total 1 584 11 031
7907.00 Other articles of zinc
United States 2 167 17 305 3 869 33 588 2 971 27 240
Singapore 1 2 121 430 1 001 2 350
Indonesia . . . 1 18 100
United Kingdom 4 30 2 17 17 85
Thailand 3 19 . . . . . . 8 46
Sweden 11 58 8 37 4 44
Mexico 15 52 6 60 7 38
Ireland . . . . . . 1 3 6 29
Australia 1 4 1 5 4 27
Other countries 13 59 108 222 29 116
Total 2 215 17 529 4 116 34 363 4 064 30 075
Total exports 852 087 2 308 954 845 605 2 735 060 976 149 1 881 644
IMPORTS
2603.00.00.30 Zinc content in copper ores and concentrates
United States 18 25 1 2
Germany . . . 1
Total 18 25 1 3
2607.00.00.30 Zinc content in lead ores and concentrates
United States 2 653 6 187 2 539 6 590 454 969
2608.00.00.30 Zinc content in zinc ores and concentrates
United States 182 821 418 861 194 535 551 559 210 099 282 803
Peru 74 816 180 811 66 436 199 438 71 129 50 895
Chile 2 927 5 279 9 094 20 480 9 178 13 591
Other countries 17 574 29 260 12 137 27 689 5 309 7 690
Total 278 138 634 211 282 202 799 166 295 715 354 979
2620.11 Ash and residues containing hard zinc spelter
United States . . . . . . . . . . . . . . . . . .
2620.19 Ash and residues containing mainly zinc, n.e.s.
United States 389 433 8 424 2 040 6 606 1 127
Other countries 130 138 . . . . . . . . . . . .
Total 519 571 8 424 2 040 6 606 1 127
2817.00 Zinc oxide; zinc peroxide
United States 6 889 19 275 5 827 20 180 6 249 14 542
Mexico 3 687 6 792 3 619 8 971 2 454 5 268
Turkey 175 391 975 2 095
Japan 52 80 31 153 49 235
Netherlands . . . . . . 1 4 100 203
Other countries 173 334 27 219 52 132
Total 10 801 26 481 9 680 29 918 9 879 22 475
2827.36 Other chlorides: of zinc
United States 955 1 212
Other countries 61 134
Total 1 016 1 346
2827.39.40.00 Other chlorides: other, of zinc
United States 803 1 347 652 1 029
Belgium 54 153 74 185
China 380 805 22 24
Other countries 1 5 11 41
Total 1 238 2 310 759 1 279
2833.26 Zinc sulphate
China 3 052 3 334
United States 1 662 2 226
Other countries 208 248
Total 4 922 5 808
7901.11 Zinc, not alloyed, unwrought, containing by weight 99.99% or more of zinc
United States 434 1 498 445 1 788 704 1 270
Canada 7 25 411 655 297 531
Other countries 1 288 4 487 24 59 3 7
Total 1 729 6 010 880 2 502 1 004 1 808
7901.12 Zinc, not alloyed, unwrought, containing by weight less than 99.99% of zinc
United States 258 376 259 575 248 624
Japan 101 192
Other countries 2 3 9 19
Total 258 376 261 578 358 835
7901.20 Zinc alloys, unwrought
United States 10 015 29 531 12 363 49 391 6 934 18 336
China 236 550 7 26 17 40
Other countries 1 5 1 5 1 2
Total 10 252 30 086 12 371 49 422 6 952 18 378
7902.00 Zinc waste and scrap
United States 1 050 1 060 915 1 430 284 571
Other countries 2 2 . . . . . . 2 5
Total 1 052 1 062 915 1 430 286 576
7903.10 Zinc dust
Belgium 2 786 10 811 2 759 11 828 754 3 315
United States 441 2 221 538 3 313 402 2 043
Other countries 96 410 32 182 27 117
Total 3 323 13 442 3 329 15 323 1 183 5 475
7903.90 Zinc powders and flakes
United States 2 502 5 141 621 1 395 189 707
Germany 26 61 49 176 17 76
Other countries 78 142 1 3 14 44
Total 2 606 5 344 671 1 574 220 827
7904.00 Zinc bars, rods, profiles and wire
United States 905 2 292 831 2 656 817 2 141
China 560 1 747 640 1 957 449 1 913
Finland 64 205 86 431 59 206
India 207 583 42 150 48 170
Other countries 10 43 38 134 19 62
Total 1 746 4 870 1 637 5 328 1 392 4 492
7905.00 Zinc plates, sheets, strip and foil
France 326 1 312 430 1 948 238 1 274
United States 408 1 500 320 1 228 249 1 002
Germany 364 1 503 92 493 195 963
China 13 50 18 80 62 300
Other countries 12 38 32 133 23 107
Total 1 123 4 403 892 3 882 767 3 646
7906.00 Zinc tubes, pipes, and tube or pipe fittings (for example, couplings, elbows, sleeves)
Canada 1 024 791
China 172 769
India 1 708 1 397
Mexico 1 139 740
United Kingdom . . . 10
United States 159 1 422
Other countries 21 133
Total 4 223 5 252
7907.00 Other articles of zinc
United States 2 158 9 129 3 162 14 903 2 083 9 700
China 1 005 5 157 1 496 8 310 1 265 8 740
Mexico 163 251 1 369 1 501 437 3 009
Taiwan 492 2 402 468 2 680 559 2 638
India 372 845 924 1 893 262 2 126
Canada 74 375 3 038 1 925 247 1 233
Germany 27 245 47 243 58 648
Other countries 202 1 319 217 1 401 411 2 332
Total 4 493 19 723 10 721 32 856 5 322 30 426
Total imports 328 872 765 197 335 761 952 922 330 897 447 292

Sources: Natural Resources Canada; Statistics Canada.
– Nil; . . . Amount too small to be expressed; n.e.s. Not elsewhere specified; (p) Preliminary.
Notes: HS Code change from 2827.36 to 2827.39.40 as of 2007. HS Code change from 2833.26 to 2827.39.40 and 2833.29.00.90 as of 2007. HS Code change from 7906.00 to 7907.00.20 and 7907.00.20.30 as of 2007. Numbers may not add to totals due to rounding.


TABLE 3.
ZINC USE IN CANADA, 2005-07
  2005 2006 2007
Primary Secondary Total Primary Secondary Total Primary Secondary Total
(tonnes)
Zinc used (1,2) for or in the production of:
Copper alloys (brass, bronze, etc.) x x 714 x x 873 x x 918
Electroplating x x 576 x x 533 x x 553
Galvanizing: electro x x 1 174 x x 1 393 x x 1 276
hot dip x x 64 792 x x 69 688 x x 66 595
Zinc die-cast alloys x x 39 659 x x 39 541 x x 29 218
Other products (including rolled and ribbon zinc, zinc oxides) x x 42 743 x x 40 705 x x 36 405
Total 147 992 1 666 149 658 149 798 2 934 152 732 132 866 2 100 134 966
User stocks, year–end 9 585 24 9 609 16 571 237 16 808 11 245 114 11 358

Sources: Natural Resources Canada; Statistics Canada.
x Confidential.
(1) User survey does not represent all Canadian users and is therefore consistently less than the apparent quantity used. (2) Due to confidentiality in some end-use categories, a breakdown of primary and recycled sources is not provided in order to be consistent.
Note: Numbers may not add to totals due to rounding.


TABLE 4.
CANADA, ZINC PRODUCTION AND EXPORTS, (1) 1988-2008
  Production Exports
All Forms (2) Refined (3) In Ores and Concentrates Refined Total
1988 1 370 000 703 206 816 885 551 521 1 368 406
1989 1 272 854 669 677 614 223 495 060 1 109 283
1990 1 179 372 591 786 716 185 452 251 1 168 436
1991 1 083 008 660 552 566 815 520 508 1 087 323
1992 1 195 736 671 702 678 172 509 744 1 187 916
1993 990 727 659 881 455 953 493 265 949 218
1994 976 309 690 965 450 320 551 168 1 001 488
1995 1 094 703 720 346 609 575 533 179 1 142 754
1996 1 162 720 716 467 670 790 581 608 1 252 398
1997 1 026 864 703 798 489 697 546 965 1 036 662
1998 991 584 745 131 425 340 576 925 1 002 265
1999 963 321 776 927 327 662 610 792 938 454
2000 935 713 779 892 318 752 602 626 921 378
2001 1 012 048 661 172 419 164 495 184 914 348
2002 923 931 793 410 409 343 598 251 1 007 594
2003 757 307 761 199 257 877 590 555 848 432
2004 734 035 805 438 228 181 614 060 842 241
2005 618 844 724 035 178 099 527 304 705 403
2006 601 481 824 464 109 426 626 965 736 391
2007 594 113 802 103 129 044 610 970 740 014
2008 (p) 629 175 764 312 277 079 599 469 876 548

Sources: Natural Resources Canada; Statistics Canada.
(p) Preliminary.
(1) Beginning in 1988, exports are based on the new Harmonized System and may not be in complete accordance with previous method of reporting. Ores and concentrates include HS class 2608.00.30, 2603.00.30, 2607.00.30 and 2616.10.30. Refined production includes HS class 7901.11 and 7901.12. (2) New refined zinc produced from domestic primary materials (concentrate, slags, residues, etc.) plus estimated recoverable zinc in ores and concentrates shipped for export. (3) Refined zinc produced from domestic and imported ores.


TABLE 5.
WORLD MINE PRODUCTION OF ZINC, 2003-08
  2003 2004 2005 2006 2007 2008 (p)
(000 tonnes)
EUROPE
Finland 39 37 41 36 39 28
Ireland 419 438 429 426 401 398
Poland 154 148 136 127 124 121
Russia 159 162 186 178 177 180
Spain 15
Sweden 188 199 216 210 214 199
Others 45 37 32 50 79 116
Subtotal 1 019 1 021 1 040 1 027 1 034 1 042
AFRICA
Morocco 69 87 128 95 51 49
Namibia 108 202 232 208 196 196
South Africa 41 32 32 34 31 29
Others 41 36 22 3 3 4
Subtotal 259 357 414 340 281 278
OCEANIA
Australia 1 447 1 298 1 329 1 338 1 498 1 479
AMERICAS
Bolivia 145 146 159 173 194 362
Brazil 147 165 171 173 194 190
Canada 788 791 667 638 630 678
Mexico 472 462 476 469 452 487
Peru 1 369 1 209 1 202 1 202 1 444 1 603
United States 768 739 720 727 803 827
Others 106 96 4 121 117 119
Subtotal 3 795 3 608 3 496 3 503 3 834 4 266
ASIA
China 2 029 2 391 2 547 2 844 3 048 3 186
India 305 340 446 503 558 598
Iran 111 135 167 166 75 86
Japan 45 48 41 7
Kazakhstan 392 404 405 410 446 482
North Korea 52 62 65 85 95 85
Thailand 31 40 43 42 42 40
Turkey 40 39 56 59 71 68
Others 53 49 62 119 154 158
Subtotal 3 058 3 508 3 832 4 235 4 489 4 703
Total world 9 579 9 792 10 110 10 443 11 136 11 768

Source: International Lead and Zinc Study Group.
– Nil; (p) Preliminary.


TABLE 6.
WORLD ZINC METAL PRODUCTION, (1) 2003-08
  2003 2004 2005 2006 2007 2008 (p)
(000 tonnes)
EUROPE
Belgium 244 257 222 238 240 212
Finland 266 285 282 282 306 298
France 253 260 209 120 125 109
Germany 388 358 335 317 295 292
Italy 123 118 121 109 102 105
Netherlands 223 225 228 238 219 239
Norway 142 139 148 161 157 145
Poland 154 154 137 134 142 146
Russia 253 241 211 248 263 270
Spain 519 523 500 507 509 493
Others 179 161 166 154 158 162
Subtotal 2 744 2 721 2 559 2 508 2 516 2 471
AFRICA
Algeria 32 30 37 33 27 28
Namibia 47 119 133 134 150 144
South Africa 112 105 104 90 101 92
Zambia 2 2 1 2
Subtotal 194 257 274 257 279 266
AMERICAS
Argentina 39 35 41 43 43 36
Brazil 258 266 267 272 265 260
Canada 761 805 723 824 802 764
Mexico 320 337 336 285 320 342
Peru 202 196 164 175 162 190
United States 350 354 350 269 279 274
Subtotal 1 930 1 993 1 881 1 868 1 871 1 866
ASIA
China 2 319 2 720 2 776 3 163 3 743 3 913
India 280 272 302 415 459 636
Iran 84 96 140 139 125 110
Japan 651 635 638 614 598 616
Kazakhstan 279 323 357 365 358 366
South Korea 645 669 647 667 691 742
Thailand 107 103 93 84 99 100
Others 85 94 99 108 114 105
Subtotal 4 450 4 912 5 052 5 555 6 187 6 588
OCEANIA
Australia 553 474 457 466 502 499
Total world 9 871 10 357 10 228 10 654 11 355 11 690

Source: International Lead and Zinc Study Group.
– Nil; (p) Preliminary.
(1) Total production by smelters and refineries of zinc in marketable form or used directly for alloying, including production on toll in the reporting country, regardless of the type of source material from which it is produced, i.e., whether ores, concentrates, residues, slag or scrap. Remelted zinc and zinc dusts are excluded.


TABLE 7.
ZINC USE, (1) BY COUNTRY AND BY REGION, 2003-08
  2003 2004 2005 2006 2007 2008 (p)
(000 tonnes)
EUROPE
Belgium 350 365 345 360 387 393
France 291 298 275 285 275 249
Germany 539 514 511 564 535 526
Italy 348 389 395 313 398 281
Netherlands . . . . 115 116 117 105
Russia 189 163 171 199 207 202
Spain 226 248 216 225 225 210
United Kingdom 188 185 175 172 174 158
Others 666 668 481 552 532 499
Subtotal 2 797 2 830 2 684 2 786 2 850 2 623
AFRICA
South Africa 86 96 103 99 108 100
Others 88 97 101 100 102 99
Subtotal 174 193 204 199 210 199
OCEANIA
Australia 254 250 239 255 202 195
New Zealand 13 13 14 12 12 12
Subtotal 267 263 253 267 214 207
AMERICAS
Brazil 215 239 222 238 248 259
Canada 185 189 175 181 173 163
Mexico 236 240 244 250 250 252
United States 1 152 1 251 1 077 1 153 1 016 987
Others 162 204 186 200 196 200
Subtotal 1 950 2 123 1 904 2 022 1 883 1 861
ASIA
China 2 155 2 690 3 041 3 115 3 597 4 014
India 339 362 394 430 455 491
Japan 619 623 602 594 588 564
South Korea 482 445 501 534 512 507
Taiwan 330 342 306 282 226 226
Thailand 116 129 117 104 105 109
Turkey 122 144 142 136 137 128
Others 497 512 495 502 533 552
Subtotal 4 660 5 247 5 598 5 697 6 153 6 591
Total world 9 848 10 657 10 641 10 971 11 310 11 481

Source: International Lead and Zinc Study Group.
. . Not available; (p) Preliminary.
(1) Total refined zinc use, including zinc used directly for the production of zinc alloys, regardless of the type of source material from which it is produced, i.e., ores, concentrates, residues, slags or scrap. Remelted zinc and zinc dusts are excluded.


TABLE 8.
CANADA, ZINC METAL CAPACITY, 2008
Company and Location Annual Rated Capacity
(000 tonnes of slab zinc)
PRIMARY
Canadian Electrolytic Zinc Limited
Salaberry-de-Valleyfield, Quebec
280
Xstrata Zinc Canada
Timmins, Ontario
150
HudBay Minerals Inc.
Flin Flon, Manitoba
118
Teck Cominco Limited
Trail, British Columbia
295
Total primary, Canada 843

Source: Natural Resources Canada.


TABLE 9.
MONTHLY AVERAGE ZINC PRICES, 2007 AND 2008
  LME Special High
Grade Settlement
(US$/t)
2007
January 3 786.7
February 3 309.5
March 3 271.3
April 3 557.5
May 3 830.3
June 3 603.3
July 3 546.9
August 3 252.5
September 2 881.4
October 2 975.3
November 2 541.3
December 2 353.1
Yearly average 3 242.4
2008
January 2 340.1
February 2 438.1
March 2 511.5
April 2 263.8
May 2 182.1
June 1 894.5
July 1 852.4
August 1 723.3
September 1 735.5
October 1 302.1
November 1 152.6
December 1 100.6
Yearly average 1 874.7

Source: International Lead and Zinc Study Group.