Glencore Getting What It Wants in Zinc
- Zinc prices have shot to a 10-year high on supply cutbacks
- Glencore plans to increase its stake in Peru’s top zinc miner
Ore from the Bracemac-McLeod mine is concentrated at the Glencore Plc zinc processing plant in Matagami, Quebec, Canada, on Friday, Sept. 11, 2015. After tumbling in the rankings in recent years, Quebec has re-established itself as one of the world's most attractive mining jurisdictions, according to the Fraser Institute's annual survey of the mining industry.
Photographer: Valerian Mazataud/BloombergTwo years ago, the world’s largest zinc miner needed to cut production to turn around a bloated market. Now, supply is the tightest in years and Glencore Plc wants to get bigger.
Glencore curtailed zinc output at mines in Australia and Kazakhstan to solve a supply overhang and lift prices off six-year lows. The company succeeded -- the zinc market is in deficit, prices are at a decade high and inventories are getting scarce.