china may cut zinc production

Teck Cominco Ltd. rose after a participant in talks among China's zinc smelters said the companies are considering output cuts. Zinc smelters in China, the world's largest producer of the metal, will meet to consider production cuts as prices decline, a company executive said, and as power shortages force the metals industry to consume less energy. Producers including Sichuan Hongda Chemical Industry Co. and Henan Yuguang Gold & Lead Co. are meeting this weekend to discuss what other measures to take, the executive said, declining to be named as his company wasn't invited to the talks, which are private. The official spoke earlier yesterday to smelter executives who will attend the meeting. Teck chief executive officer Donald Lindsay said in a May 23 interview that falling zinc prices will prompt companies to shut mines, cutting global supplies in 18 months. Zinc accounted for 37 per cent of Teck's first-quarter revenue, Bloomberg data show. TCK.B (TSX) rose 82 cents to $43.22.