MMG Limited has announced its fourth quarter 2017 worldwide production result highlighting its first zinc production at Dugald River, north of Cloncurry.
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MMG said zinc production commenced at Dugald River in late 2017, with 12,412 tonnes of zinc in zinc concentrate produced as part of commissioning activities during the December quarter.
MMG’s chief executive officer Jerry Jiao said that in total, MMG produced 86,595 tonnes of zinc in 2017, an increase of 7% on 2016.
“The successful initial commissioning of Dugald River has been a remarkable effort, and we are on track to deliver this project under budget and ahead of schedule,” Mr Jiao said.
“Dugald River will ramp up to nameplate capacity of 1.7 million tonnes of mill throughput per annum over coming months and we expect to produce 120,000 to 140,000 tonnes of zinc in zinc concentrate in 2018. This asset comes on line at the ideal time of tightening zinc supply and higher prices.”
MMG also produced 74,803 tonnes of zinc in 2017 at its Rosebery operation in Tasmania, which was above the guidance range of 65,000 to 72,000 tonnes, due to the strong December quarter.
As for its 2018 production guidance, MMG expects continued strong copper production and improving zinc production as Dugald River ramps up toward nameplate capacity in 2018.
MMG expects to produce 560,000 to 590,000 tonnes of copper and 190,000 to 220,000 tonnes of zinc in 2018.
This news comes as London Metal Exchange cash zinc broke through US$3500 per tonne on Thursday, and extended those gains on Friday, rising by a further 0.5% to $3519.50/t.
Zinc is up by nearly 5.5% so far this year and by close to 10.8% since the start of December.
Cobalt also rose by another 0.3% to $79,623/t, the highest close since the metal started trading on the LME.
Copper dropped slightly for the second day running, but remained above $7000/t.
The price moved about $7000/t in October last year for the first time in three years on demand from China.
In other zinc news, Glencore has issued an investor update which said the company was predicting an increase of 195kt for zinc in the 2018-20 period which “reflects anticipated restart of Lady Loretta”.
The mine, 110km northwest of Mount Isa, is expected to resume operations in the first half of this year.
Job opportunities will target locally based people where possible, the company said.
Glencore said that following a tender process, Brisbane based Redpath Australia has been awarded a mining contract to operate the mine.
Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
