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Ann: Pursuit Intersects 34m of Mineralised Fault Zone at Bluebush, page-24

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    Zinc prices hit their highest in more than 10 years as tight supplies created by mine closures and healthy demand from China boosted the market.
    Benchmark zinc on the London Metal Exchange ended up 1.2 per cent higher at $US3302 a tonne. Earlier the metal, used to rust-proof steel, touched $US3308.75, its highest since August 2007.
    "There is tightness ... mine closures from a few years ago are feeding through. But mine supply has picked up this year, which suggests tightness will start to fade as we move into next year," Capital Economics analyst Caroline Bain said.
    "The demand outlook looks subdued, particularly if Chinese authorities close steel capacity ... This would mean zinc demand slows in the fourth quarter and early next year."
    China has pledged to cut average concentrations of airborne particles known as PM2.5 by more than 15 per cent year-on-year in the winter months in 28 northern cities to meet key smog targets. This means curbing activity in polluting industries such as steel production and zinc smelting.
    China's zinc imports at 65,609 tonnes in August are up nearly 160 per cent over the same month last year. But the year-to-date total at 314,086 tonnes is down nearly six per cent.
    An official gauge of China's steel industry declined in September.
    About half of global zinc consumption - estimated at around 15 million tonnes this year - is used to galvanise steel.
    Stocks of zinc in LME approved warehouses at 251,750 tonnes are down more than 40 per cent since the start of 2017. Cancelled warrants - metal earmarked for delivery - at 55 per cent of total stocks have also reinforced worries about shortages.
    Large holdings of zinc warrants and cash contracts have also fuelled concern about nearby supplies on the LME market. The premium for the cash over the three-month contract is holding around $US50 a tonne.

    A worker scrapes the surface from cooling zinc ingot. Photo: Andrey Rudakov
 
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