China soaking up large amounts of World zinc concentrate.
Xstratas ore supply going down.
They'll need more concentrate from somewhere one would think.
Lets hope BC and VB's judgement is on the mark. ---------------------------------------------------------April 22, 2008 - 3:25PM
Teck Cominco Ltd, the world's second largest zinc producer, will close the Lennard Shelf zinc mine in Western Australia next year if there is no lift in commodity prices.
The Canadian-based miner flagged a review and a potential shortening of the mine's four year life earlier this year, following lower than expected production and higher than anticipated costs at the operation.
Teck Cominco said overnight the company would close the mine "in the fourth quarter of 2009 at current metal prices".
The company said "market conditions, operating costs and the performance of the mine will be closely monitored going forward and the mine life will be adjusted accordingly".
Lennard Shelf, which is jointly owned with Xstrata Plc, resumed production in the first quarter of 2007 after spending more than three years on care and maintenance.
Teck Cominco acquired the Lennard Shelf assets for $26 million in 2003 after previous owner Western Metals Ltd went into voluntary administration.
The mine was placed on care and maintenance in October 2003 amid low zinc prices, with Teck Cominco resuming production last year after a rebound in commodity prices.
The mine is located about 400 kilometres east of Broome in the Kimberley region in Western Australia. ----------------------------------------------------------- d.
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