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Nyrstar suspends U.S. mine in face of weak zinc price

Published 2015-12-07, 02:52 a/m
© Reuters. Nyrstar suspends U.S. mine in face of weak zinc price
NYR
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BRUSSELS, Dec 7 (Reuters) - Belgium's Nyrstar NV NYR.BR
said on Monday it was suspending operations at another mine as
it seeks to reduce cash consumption in the face of weak zinc
prices.
The company, the world's largest zinc smelter, said it would
place its Middle Tennessee Mines on so-called care and
maintenance, resulting in about 50,000 tonnes of zinc in
concentrate being taken out of the market.
Zinc metal production at Nyrstar's nearby Clarksville
smelter would be reduced by about 7 percent, equivalent to some
9,000 tonnes per year. It would continue to be supplied by East
Tennessee Mines and elsewhere.
"We continue to take decisive action to reduce spending in
our mines, and further mine operation suspensions may be
necessary if the depressed metals price environment continues,"
Nyrstar chief executive Bill Scotting said in a statement.
Nyrstar said last month it would consider cutting zinc
concentrate output by 400,000 tonnes if prices remained
depressed. That would be on top of 100,000 tonnes removed by the
earlier suspension of its Myra Falls operations in Canada and
Campo Morado operations in Mexico, it said.
Zinc three-month forward prices CMZN3 are hovering around
six-year lows and are down a third since early May.
Nyrstar has also announced plans for a rights issue of
250-275 million euros ($272-299 million) to shore up its balance
sheet and said it could even exit its poorly performing mining
business.
"We expect to complete the process to divest the majority or
all of our mines over the course of 2016," Scotting said on
Monday.
($1 = 0.9206 euros)

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