Teck Resources Ltd. may stand to gain the most of any mining company should a supply shortfall in zinc force smelters to slash the fees they charge miners to refine the metal.
The Vancouver-based company mines more zinc than it refines, resulting in a net-“long” position in unrefined zinc that’s the largest in the world, Teck has said, citing Wood Mackenzie data.
Tight zinc supplies have supported prices, and may push processing fees lower as smelters compete for ore. Global output of refined zinc trailed consumption by 286,000 metric tons in 2016, the International Lead and Zinc Study Group said in a report Feb. 15. Zinc has surged about 50 percent in the past year, and posted the best return in the Bloomberg Commodity Index of raw materials. Continue Reading →