Zinifex shuts Port Pirie furnace
Zinc soared to a high of US$4,535/t in November
Australian zinc producer Zinifex Ltd has closed down a blast furnace at its Port Pirie smelter in South Australia after a worker was injured in a steam explosion last weekend.
The damage - which has caused the smelter to be shut down for seven to 10 days - was not to the blast furnace itself but to the nearby slag granulation system.
"Damage was sustained in the blast furnace area at Port Pirie smelter following a steam explosion when molten slag came into contact with water last weekend," said the company in a statement, adding that the furnace has been shut down to allow repairs to the damaged equipment.
As a result, lead and silver production this financial year will be reduced by around 6,000 t and 7,600 kg respectively. Other operations will continue and are largely unaffected.
The injured worker sustained steam burns to his arms and is recovering well after treatment.
The Port Pirie smelter is the largest primary lead smelter. Located on the eastern shore of Spencer Gulf and its operations and residue stockpiles are located on site. There is an adjacent dedicated port facility and products are dispatched by road and rail.
In other news, Zinifex chief executive Greig Gailey has told zinc producers not to worry about substitution metals taking the place of zinc following the metal`s recent sharp gains.
In November, zinc prices soared to a record high of US$4,535/t, but have since retreated to around US$3,100/t on easing supply concerns.
Speaking at a mining conference today, Mr Gailey said that, after attempts by vehicle makers in the 1960s to build car bodies without galvanised steel flopped, zinc`s single biggest end use was intact.
Analysts expect Zinifex to report around A$800 million in first-half net profit when it announces results on February 22. (February 6)
Related links:
Ausmelt-Zinifex MoU
More from Budel
Zinifex quadruples annual profit
Umicore Zn hedge
Endeavor off-take deal
Zinifex costs offset by higher metals prices
Century capex to rise
Features:
Reversal of fortune for lead
Zinc in supply deficit owing to past underinvestment
External links:
Zinifex Ltd - corporate website
Return to Latest Mining News
ZFX
zinifex limited
