Global Metals Market Update: China's Lead Capacity Shutdowns and Mining Industry Developments

Strategic Insights -

China's lead capacity shutdowns in Henan province have been denied by officials, as concerns over lead poisoning in children continue to rise. Meanwhile, Aluminum Corp. of China (Chinalco) has signaled its willingness to cooperate with Anglo-Australian miner Rio Tinto Plc in bauxite and alumina production. The global metals market is also seeing developments in copper, zinc, and cobalt mining, with various companies and countries taking steps to secure their share of the industry.

Key Takeaways:

  • China's lead capacity shutdowns in Henan province have been denied by officials, contradicting media reports of the closures.
  • Aluminum Corp. of China (Chinalco) has expressed interest in cooperating with Anglo-Australian miner Rio Tinto Plc in bauxite and alumina production.
  • Polish copper miner KGHM Polska Miedz SA's labor union demands have been deemed unfounded by the company's management board.
  • US domestic zinc mine production increased by 2.2% in March to 55,200 metric tons, compared to 54,000 tons in February.
  • Atlas Consolidated Mining and Development Corp. has completed loading 5,244 wet metric tons of copper concentrate bound for China.
  • Zambia's largest cobalt smelter Chambishi Metals PLC may resume operations next month.
  • Congo's U.N.-backed army has pushed militias from the Democratic Liberation Forces of Rwanda out of their mining strongholds in North and South Kivu.
  • Congo's Centre for Evaluation, Expert Analysis and Certification of Precious Minerals (CEEC) has set up a modern mineral laboratory in the copper-rich Katanga province.
  • Freeport McMoRan Copper & Gold Inc.'s (FCX) Indonesian operations were unaffected by an attack on a truck convoy on Saturday.
  • Copper prices climbed 7% on the London Metal Exchange, reaching their 2009 high.

Statistics:

  • US domestic zinc mine production: 55,200 metric tons in March (up 2.2% from 54,000 tons in February).
  • Copper concentrate: 5,244 wet metric tons loaded by Atlas Consolidated Mining and Development Corp. bound for China.
  • Copper prices: climbed 7% on the London Metal Exchange, reaching their 2009 high.
  • Zinc mine production increase: 2.2% in March compared to 54,000 tons in February.

Sources:

  • Dow Jones Commodities News via Comtex
  • Dow Jones Newswires
  • Comtex SmarTrend Alert