Terramin says it is pleased with progress toward full production at its Angas zinc mine. “Production grades of ore from the mine have been much higher than expected, entailing faster build-up of concentrate and expanded trucking schedules.” To date, 600 t (dry) of lead concentrate have been delivered to the Port Pirie smelter for refining. Over 2,000 t (dry) of zinc concentrate is stockpiled at Port Adelaide awaiting the first shipment to Korea next month. The stockpile is growing at 1,200 t/week.
The company notes that “metal commodity prices including lead and zinc have retreated significantly in the last few weeks and months causing the industry to dramatically reassess current and future business plans. Teck Cominco has shut the Lennard Shelf base metal operation in Western Australia, AIM Resources has suspended development of the Perkoa zinc project in Burkina Faso and CBH Resources has elected to cut its workforce at the Endeavour mine in NSW and target high grade ore to remain viable.
“A recent media report suggested that 15% of all zinc miners are operating at a loss at current metal prices. This does not include Terramin. We remain well-positioned to ride out this part of the cycle and expect lead and zinc prices to regain long-term levels in the coming months. In the medium-term the curtailing of new projects makes it inevitable that prices will go much higher to meet demand, which is still growing strongly. Some analysts suggest this critical point will occur in 2010; however others have pointed out that any sustained period of lower prices will bring this point forward.
“We continue to target early 2009 for completion of the Tala Hamza feasibility study. The scoping study identified the potential for a large low-cost mine.”