Canadian Minerals Yearbook (CMY) - 2008 : Lead
Lead
Printable version – PDF (232 kb)
Doug Panagapko
The author is with 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 supplier of refined lead, ranking eighth in the world in 2008.
- Canadian and world production of lead increased during 2008 because of new mine production due to higher metal prices in 2006-07.
- With the rapid decline in lead prices towards the end of 2008, mine production has been curtailed and 2009 levels will be lower. Demand for lead will be soft as the main market – the automotive sector – goes through major structural changes. In the longer term, prices should recover based on demand fundamentals from emerging economies like China and India.
- In Canada, primary lead is produced mainly as a co-product of zinc mining. Recycling of lead, mainly from depleted car batteries, is an important source of refined lead, representing about 60% of Canada’s total refined production.
| World Lead Data | 2006 | 2007 | 2008 | 2008/07 |
| (000 t) | (% change) | |||
| Mine production | 3 538 | 3 610 | 3 880 | 7.4 |
| Refined production | 7 969 | 8 114 | 8 748 | 7.8 |
| Usage (consumption) | 8 073 | 8 182 | 8 713 | 6.5 |
| Refined balance | -104 | -68 | 35 | n.a. |
| Refined stocks at year-end | 282 | 264 | 294 | n.a. |
Source: International Lead and Zinc Study Group.
n.a. Not applicable.
| LME Lead Prices | 2006 | 2007 | 2008 |
| Cash US¢/lb | 58.29 | 117.95 | 94.28 |
| Cash US$/t | 1 285.28 | 2 580.06 | 2 090.66 |
| 3 months US$/t | 1 280.47 | 2 551.33 | 2 097.23 |
| 15 months US$/t | 1 199.71 | 2 314.61 | 2 087.64 |
Source: International Lead and Zinc Study Group.
LME: London Metal Exchange.
| Canadian Lead Data | 2006 | 2007 | 2008 | 2008/07 |
| (tonnes) | (% change) | |||
| Mine output (1) | 83 096 | 75 135 | 79 271 | 5.5 |
| Lead primary refined production | 115 989 | 95 577 | 105 526 | 10.4 |
| Lead recycled refined production | 134 475 | 141 111 | 152 906 | 8.3 |
| Lead domestic shipments | 37 114 | 25 036 | 31 496 | 25.8 |
| Lead refined imports | 3 727 | 5 679 | 7 515 | 32.3 |
| Apparent lead usage (2) | 40 841 | 30 715 | 39 011 | 27.0 |
Source: Natural Resources Canada.
(1) Lead content of ores and concentrates produced. (2) Domestic shipments plus imports
INTRODUCTION
Lead has been known since ancient times and is one of several metals that were discovered during the early periods of human history. Some experts believe that lead was used as early as 5000 B.C. The oldest archaeological evidence of lead use by humans is a figurine found in the Dardanelles area of Asia Minor dating from 3800 B.C.
Lead was used in coinage in China about 2000 B.C. and was mined by the Greeks from about 1200 B.C. to make coins, ornaments, weights, and many other articles. One of lead’s most enduring uses has been as pipe for the transportation of water. Romans manufactured lead pipes in one standard length and in several diameters, and used it extensively in municipal water systems. The Latin word for lead is plumbum, which forms the root of modern English words such as “plumber” and “plumbing,” as well as the chemical symbol for lead, Pb.
Almost all lead is obtained from sulphide ores in which the most common lead mineral is galena (PbS). It is usually found in combination with other sulphide ores, most frequently those of zinc, and also those of copper. Other lead-containing minerals include cerussite (PbCO3) and anglesite (PbSO4).
HISTORY OF LEAD MINING IN CANADA
Lead-zinc ores were originally discovered in the Kootenay region of British Columbia in the 1820s. Active prospecting in the area dates from 1865 and mining commenced shortly thereafter. In the early years, the ores from British Columbia were sent to the United States for smelting and refining.
The now-famous Sullivan mine started operation near Kimberley, British Columbia, in the early 1900s and continued to produce lead until its closure in December 2001. By 1914, the Sullivan mine was the largest lead producer in Canada – a position it held for 50 years until the Pine Point mine in the Northwest Territories completed its first year of operation in 1966. Pine Point closed in 1988. The Kingdon mine at Galetta, on the Ottawa River near Arnprior, Ontario, was discovered in 1884, operated briefly in the 1880s, and was reactivated in 1914, producing lead and zinc ore until the early 1930s. The discovery, by the Geological Survey of Canada, of lead and zinc ores on Baffin Island in the mid-1950s led to the development of the Nanisivik mine in the mid-1970s. The mine closed in September 2002. The discovery of lead-zinc on Little Cornwallis Island in 1971 led to the development of the Polaris mine. Operated by Teck Cominco, the mine had the distinction of being the most northerly base-metal mine until its closure at the end of August 2002 after 20 years of operation.
CANADIAN PRODUCTION FACILITIES
Lead concentrates are produced at four mines located in three provinces. Primary refined lead metal is produced from domestic and foreign concentrates at two smelters located in New Brunswick and British Columbia. Secondary lead metal is produced from recycled lead (primarily car batteries) at four sites in Quebec, Ontario, and British Columbia (Figure 1).
In 2008, Canadian mines produced 79 271 t of lead in concentrate, compared to 75 135 t in 2007, a 5.5% increase in production (Table 1, Figure 2). Refined metal production for 2008 was 258 431 t, compared to 236 688 t in 2007, an increase of 9.2% (Table 1, Figure 3). Primary lead metal production was 105 526 t in 2008, compared to 95 577 t in 2007. This increase is mostly due to the recommencement of full production at Trail, B.C., following a lengthy maintenance shut-down in 2007. Secondary metal production was 152 906 t, compared to 141 111 t the previous year. Table 4 shows lead production, trade, and use for the period 1988-2008. Statistics on exports and imports of lead concentrates, metal, and semi-fabricated products are given in Table 2.
The following is a summary of Canadian lead mines and metal production facilities in operation during 2008.
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, it is Canada’s largest producer of primary lead. In 2008, the mine produced 3.31 Mt of ore grading 8.4% zinc and 3.3% lead, down from 3.43 Mt in 2007, resulting in the production of 70 406 t of lead in concentrate, unchanged from 70 117 t in 2007 (Production Report, December 2008). The mine is expected to close in 2010 or 2011 due to the depletion of ore reserves.
Xstrata also owns and operates the Belledune lead smelter and refinery located 35 km north of Bathurst. In 2008, the smelter produced 81 329 t of lead, compared to 70 777 t in 2007, a 15% increase. Of the 234 760 t of raw materials processed, 46% was recycled and secondary materials.
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
Newalta Corporation of Calgary, Alberta, owns and operates the NovaPb lead recycling facility in Ville Ste-Catherine, Quebec, just south of Montréal. The facility is Canada’s only lead recycling operation that employs a long rotary kiln in the process. It is capable of recycling 3.7 million lead-acid car batteries per year and has the capacity to produce up to 100 000 t of lead and lead alloys, primarily for the automotive and industrial battery manufacturing industry.
Ontario
Tonolli Canada Ltd. of Mississauga operates a secondary lead smelter and refinery that processes about 60 000 t of lead-acid batteries per year to produce about 35 000 t of lead and lead alloys.
British Columbia
The integrated zinc and lead smelting and refining complex at Trail, owned by Teck Cominco Limited, has a capacity of 100 000 t/y of refined lead. 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 85 000 t of lead, up from 76 300 t in 2007 (Fourth Quarter 2008 Report). The lead smelter returned to normal production following a major maintenance shut-down in 2007. In November, the company announced a reduction in zinc production of 4000-5000 t per month in response to poor market conditions. Refined lead production will not be affected.
A small amount of lead is contained in concentrates from the Myra Falls mine of Breakwater Resources Ltd., located about 65 km west of Campbell River.
Metalex Products Ltd. of Richmond is a secondary lead smelting and refining operation that processes lead-acid batteries and other forms of scrap lead to produce lead and lead alloys for various manufacturing customers. The plant has the capacity to process 300 000 automotive batteries per year.
RECENT DEVELOPMENTS
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.
Canadian Zinc Corporation carried out permitting activities to advance its Prairie Creek project situated 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 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.
WORLD PRODUCTION
According to the International Lead and Zinc Study Group (ILZSG), world lead mine production for 2008 was 3.88 Mt, up 7.4% from the previous year (Table 6). World refined lead metal production was 8.75 Mt, up 7.8% from 2007 (Table 7). In terms of mine production, Canada ranked seventh behind China, Australia, the United States, Peru, Mexico, and India. Canada ranked eighth in the world in terms of refined lead production. The top five lead metal-producing countries are China, the United States, Germany, the United Kingdom, and Japan. The top five lead mining companies are BHP Billiton, Xstrata, Doe Run Company, Teck Cominco, and Minera Volcan, which together account for 44% of world contained metal production. Figure 4 shows world lead mine production for the period 2006-08 while Figure 5 shows refined metal production for the same period. Output from Chinese smelters increased 15% from 2007. Figure 6 shows lead use in different areas of the world. Table 9 shows Western World secondary lead production for the period 2004-08.
The world’s largest lead mines, in terms of 2008 metal-in-concentrate production, are Cannington (Australia), Doe Run (United States, Peru), Red Dog (United States), Mt Isa (Australia), and Canada’s Brunswick mine. These five mines accounted for about 910 000 t of lead in concentrate.
INTERNATIONAL DEVELOPMENTS
The large San Cristóbal silver-zinc-lead mine in Bolivia is now in commercial production. Apex Silver Mines Limited sold its interest in the mine to joint-venture partner Sumitomo Corporation for $22.5 million. Apex will continue to manage the mine following the sale. The mine is expected to produce 250 000 t of zinc, 75 000 t of lead, and 15 million oz of silver per year.
The Magellan lead mine, owned by Ivernia Inc., has been on temporary care and maintenance since 2007 due to the discovery of lead pollution at the Australian Port of Esperance. In 2008, the Western Australian government conditionally accepted a recommendation to allow the shipment of lead carbonate concentrate from the mine in sealed bags, locked within steel containers, through the Port of Fremantle. The mine should produce in the range of 65 000 t/y of lead in concentrate.
Doe Run Resources Corp., the largest integrated lead producer in the United States, and operator of the Herculaneum smelter in Missouri, announced that it would idle one furnace at the smelter. This will decrease overall production by 12.5%.
USES
The largest single use of lead today is in the manufacture of the lead-acid storage battery, which is a vital part of every automobile. The average car battery contains about 10 kg of lead. Lead-acid batteries for automotive, industrial, and consumer purposes account for about 75% of world lead usage. In the communications industry, lead is still used extensively as protective sheathing for underground and underwater cables, including transoceanic cable systems. Certain lead compounds are used as paint pigments. Red lead (lead oxide) is the basic paint primer for iron and steel. Lead compounds are used as stabilizers in plastic (PVC) piping and in decorative glass. Lead’s corrosion-resistant nature also makes it suitable for applications in sheeting for roofing purposes, while its high density imparts radiation attenuation properties that prevent the emission of harmful radiation from television, video, and computer screens. Lead alloys such as lead-antimony are used in batteries and in the chemicals industry for pumps and valves. Lead-tin solders are used for welding metal parts together.
Table 3 shows lead use data for the period 2005-07. Total use in 2007 increased 17% over the previous year, mostly for recycled lead. Figure 7 shows the breakdown of lead uses in the United States for 2008 and gives a general comparison showing relative percentages of lead used in various applications.
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
The average annual London Metal Exchange (LME) settlement price for lead in 2008 was US$2078/t, a decrease of 20% over the 2007 average. The trend in weekly LME cash settlement prices for 2008 is shown in Figure 8. The highest price reached in 2008 was US$3461/t on March 4. By the end of the year, prices had declined 72.5% to US$950/t. Average annual cash settlement prices for the period 1985-2008 are shown in Figure 9. The trend in lead prices for the period 2004-08, along with stocks, can be seen in Figure 10. Lead inventories held in LME warehouses stood at 45 200 t at year-end, unchanged from the previous year. Total reported stocks were 297 000 t, an increase of 31 000 t from the previous year.
According to figures from ILZSG, world refined lead usage was 8.71 Mt in 2008, up from 8.18 Mt in 2007 (Table 8), an increase of 6.4%. In 2008, the world lead metal balance was a surplus of 19 000 t, compared to a deficit of 67 000 t in 2007. This is the first time a surplus in world production has occurred since 2002.
OUTLOOK
The ILZSG predicts that global lead mine production for 2009 will decrease by 6.3% to 3.66 Mt, a decline of 225 000 t from 2008 levels, due predominantly to production cutbacks at zinc-lead operations in Australia, Canada, Peru, Poland, and the United States. Some small mines in China will also close. Refined metal production should decrease to 8.6 Mt, a drop of 125 000 t. It is expected that global refined lead metal usage will be 8.56 Mt in 2009.
It is also expected that global metal supply will exceed demand by about 37 000 t in 2009. Demand for lead should remain soft for 2009 with a recovery during 2010. With the main demand sector being replacement batteries for the automotive sector and with the drastic changes being experienced by most automotive companies around the world, this is seen as a continuing concern for the lead market. Prices are expected to be in the US$1200-$1550/t range during 2009.
OTHER SOURCES OF INFORMATION ON LEAD
- Battery Council International
- Eurometaux
- International Lead Association
- International Lead Management Center
- Lead Sheet Association
- London Metal Exchange
- U.S. Geological Survey
- World Bureau of Metal Statistics
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 15, 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.
| Item No. | Description | Canada | United States | EU | Japan | ||
| MFN | GPT | USA | Canada (1) | Conventional Rate (1) | WTO (2) | ||
| 2603.00 | Copper ores and concentrates | Free | Free | Free | Free | Free | Free |
| 2607.00 | Lead ores and concentrates | Free | Free | Free | Free | Free | Free |
| 2608.00 | Zinc ores and concentrates | Free | Free | Free | Free | Free | Free |
| 2616.10 |
Precious metal ores and concentrates: silver ores and concentrates |
Free | Free | Free | Free | Free | Free |
| 78.01 | Unwrought lead | ||||||
| 7801.10 | Refined lead | Free-2.5% | Free | Free | Free | 2.5% | Free-2.7 yen/kg |
| 7801.91 | Other: containing by weight antimony as the principal other element | Free | Free | Free | Free | 2.5% | Free-3% |
| 7801.99 | Other: other | 2.5% | Free | Free | Free | Free-2.5% | Free-3% |
| 7802.00 | Lead waste and scrap | Free | Free | Free | Free | Free | 2.1% |
| 7804.00 | Lead plates, sheets, strip and foil; lead powders and flakes | ||||||
| 7804.11 | Plates, sheets, strip and foil: sheets, strip and foil of a thickness (excluding any backing) not exceeding 0.2 mm | Free-3% | Free | Free | Free | 5% | 3% |
| 7804.19 | Plates, sheets, strip and foil: other | 2.5% | Free | Free | Free | 5% | 3% |
| 7804.20 | Powders and flakes | 2.5% | Free | Free | Free | Free | 3% |
| 7806.00 | Other articles of lead | 2.5-3% | Free | Free | Free | Free-5% | 3% |
| 8548.10 | Waste and scrap of primary cells, primary batteries and electric accumulators; spent primary cells, spent primary batteries and spent electric accumulators | Free | Free | Free | Free | Free-4.7% | Free |
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 Tariffs 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.
Sources: Natural Resources Canada; Statistics Canada.
– Nil; . .Not available; (p) Preliminary.
(1) Production includes recoverable lead in ores and concentrates shipped valued at the Montréal Exchange average price for the year.
(2) Lead content of domestic ores and concentrates exported.
Note: Numbers may not add to totals due to rounding.
Sources: Natural Resources Canada; Statistics Canada.
– Nil; . . Not available; . . . Amount too small to be expressed; n.a. Not applicable; (p) Preliminary; x Confidential.
(1) Imports from "other countries" may include re-imports from Canada.
Note: HS Code change from 7803.00 to 7806.00.10 and 7806.00.90 as of 2007. HS Code change from 7805.00 to 7806.00.90 as of 2007. Numbers may not add to totals due to rounding.
Source: Natural Resources Canada.
– Nil; x Confidential.
(1) Available data, as reported by users. (2) Includes all remelt scrap lead used to make antimonial lead.
Note: Numbers may not add to totals due to rounding.
Sources: Natural Resources Canada; Statistics Canada.
. . Not available; (p) Preliminary; (r) Revised.
(1) Beginning in 1988, exports and imports are based on the new Harmonized System and may not be in complete accordance with previous method of reporting. Exports in ores and concentrates include HS classes 2603.00.20, 2607.00.20, 2608.00.20 and 2616.10.20. Refined exports include HS classes 7801.10, 7803.00, 7804.11, 7804.19 and 7804.20. Refined imports include HS classes 7801.10.10, 7801.10.90, 7803.00, 7804.11, 7804.19 and 7804.20.
(2) Recoverable lead in ores and concentrates shipped.
(3) Use of lead, primary and secondary in origin, as measured by a survey of consumers.
Source: International Lead and Zinc Study Group.
Sources: Natural Resources Canada; International Lead and Zinc Study Group.
– Nil; (p) Preliminary.
Sources: Natural Resources Canada; International Lead and Zinc Study Group.
(p) Preliminary.
Sources: Natural Resources Canada; International Lead and Zinc Study Group.
(p)Preliminary.
Sources: Natural Resources Canada; International Lead and Zinc Study Group.
– Nil; (p) Preliminary.
(1) Refined lead and lead alloys (lead content) produced from scraps, wastes, and residues.