Zinc has rallied of late, being the best performing commodity on the London Metal Exchange for the week March 13-17. Up 12% year to date, the corrosion-resistant metal is being buoyed by record refined output in China and tight supply after a number of mine closures.
News out of Iran this week, however, could stem price gains, especially if more zinc mines come on stream around the same time as plans to develop the massive Mehdiabad zinc mine, come to fruition.
Reuters reported that Iranian Mines and Mining Industries Development and Renovation Organisation (IMIDRO) signed a $1-billion deal with private investors over the weekend to build the mine, which is expected to become operational in four years and produce an annual 800,000 tonnes of zinc concentrate. Continue Reading →