Annual Asian benchmark terms.....refers to smelting costs. Zinc...

Annual Asian benchmark terms.....refers to smelting costs.

Zinc smelters around the world (ZFX own 4) compete for supply of zinc concentrates from mining companies. They may charge around nett 20 cents per lb.....so its big business. So much so, with current zinc concentrates shortfall, I think the market has moved away from annual deals to more of a spot smelting charge.

Somewhat confusing......but CBH use Toho Zinc for all their smelting. I think PEM use ZFX Port Pirie, as well as a Korea smelter.

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Somebody in Japan needs to improve their research:



Upgraded sr.debts of Toho Zinc to BBB+/Stable
September 13, 2006

Issuer: Toho Zinc Co., Ltd. (securities code no.: 5707)

JCR has upgraded the rating on senior debts of the issuer from BBB to BBB+/Stable. It has affirmed the J-2 rating on CP program of the issuer.

CP:
Maximum: Y10 billion
Backup Line: 0%


Toho Zinc is a major independent zinc and lead smelter. It acquired Australia's Endeavor mine in September 2003 through Consolidated Broken Hill (CBH), which is now an equity-method investee company of it. Thanks to this acquisition, it has competitive advantage in its high ratio of its own ownership of mines to the total mineral resources. Rising prices of zinc and lead boost earnings of the Company's smelting business. Stable procurement of ores via investments in mines and resumption of indium recovery have strengthened the Company's competitive edge. JCR upgraded the rating for Toho Zinc, given progress in earnings diversification thanks to growth of environment & recycling business and improved financial structure. JCR will pay attention to the future developments as to offshore mine developments and enhancement of recycling business.