In 2016, China was the top producer of zinc, with Australia and Peru following behind it.
Zinc did not do well in 2015, however, the zinc price forecast increased in 2016, and it gained more than 60% and claimed the title of the best-performing LME metal.
Additionally, financial experts expect zinc to well in 2017 as the demand for the non-ferrous metal is rising and supply is falling. This decrease in supply is a direct result of zinc mining companies closing. Due to analysts predicting that zinc will do well this year, it is important to look at how zinc supply did the year prior. Based on the latest data from the US Geological Survey, here is an overview of the top 10 zinc-producing countries for 2016.
1. China
It is no wonder that China has claimed the number one spot on this list. China, who was the top producer of zinc last year, had a mine production of 4.5 million MT in 2016 and 4.3 million MT in 2015.
Asian countries, interestingly enough, are not only the world’s largest zinc producers, but they are also major consumers of the non-ferrous metal. As a matter of fact, China played a defining role in why zinc did as well as it did last year. There was a growing demand for the metal, which was supported by China’s advanced property sales and by the government’s instruction for more projects focused on infrastructure.
2. Peru
In 2016, Zinc supply in Peru decreased by 120,000 MT. Despite producing 1.42 million MT in 2015 and only 1.3 million MT in 2016, Peru still managed to claim second place on this list due to Australia’s decrease in output.
Zinc refining began in the 1920’s for Peru and during a period from the 1970’s to the 1990’s, Peru saw an increase in private international investors who were hoping to increase the country’s zinc supply even further. Currently, one of the most prominent zinc mining companies is Trevali Mining (TSX:$TV). This company focuses on producing both zinc and lead-silver concentrates.
3. Australia
When zinc mining companies close, zinc supply is affected, and Australia learned this first hand. In October of 2015, mining concluded at Australia’s Century mine, which resulting in Australia producing 850,000 MT of zinc in 2016. This is almost half of the 1.6 million MT the country produced in 2015.
4. United States of America
Despite having a slight decrease from 825,000 MT in 2015, the United States managed to produce 780,000 MT of zinc last year.
Based on the latest reports from the US Geological Survey, zinc was produced at 12 mines, in five states, operated under four separate companies. Mentioned above, when zinc mining companies close, the production of zinc is affected, and this happened in the United States as well. In December of 2015, Nyrstar’s Middle Tennessee mines closed, which caused a decrease in production. The closure of these mines caused a drastic decrease in production because the mines used to produce 50,000 tons of zinc in concentrate per year.
5. Mexico
From 2015 to 2016, zinc output in Mexico increased by 30,000 MT. According to MBendi Information Services, one of the largest zinc mining companies in the country is Grupo Mexico (BMV:$GMEXICOB). However, according to the same source, Industrias Penoles is Mexico’s largest producer of zinc and its biggest natural resource company.
6. India
Despite having one of the world’s top zinc mining companies (Rampura Agucha mine), India’s zinc production has fallen over the last few years. In 2015, India produced 821,000 MT and it only put out 650,000 MT of the metal in 2016.
7. Bolivia
In 2016, Bolivia had a mine production of 460,000 MT, which is considerably higher than what the country produced the year prior with 440,000 MT. One of the major zinc mining companies in Bolivia is the San Cristobal mine, and according to the company, this is world’s sixth-largest zinc-producing mine. Additionally, San Cristobal mine is the third-largest producer of silver in the world.
8. Kazakhstan
Zinc supply in 2016 has remained quite stable in comparison to 2015. Kazakhstan produced 339,000 MT in 2015 and 340,000 MT of zinc last year.
According to MBendi Information Services, Kazakhstan’s zinc output has fallen considerably (roughly 75%) since it first reached its peak in the 1980’s. One of the major zinc mining companies in the country is Kazzinc, which is not only a major producer of zinc but also copper, precious metals, and lead. Kazzinc is thought to be one of the five low-costing zinc producers in the world.
9. Canada
Over the last few years, Canada has seen a decrease in zinc output, however, there was an output increase from 277,000 MT in 2015 to 310,000 MT in 2016. Like Australia and the United States, Canada experienced a decrease in zinc supply due to the Brunswick mine closing in May of 2013. According to CBC news, the Brunswick mine was not only one of the world’s largest zinc mines, but it was also thought to be the most profitable.
10. Sweden
With a slight increase from 247,000 MT in 2015, Sweden managed to produce 250,000 MT of zinc last year. Sweden has two main zinc mining companies, such as Boliden’s (STO:$BOL) Garpenberg zinc-silver mine and Lundin Mining’s Zinkgruvan zinc-copper mine.
Featured Image: Photo by Mike Beauregard / CC by
