Mitsui Mining & Smelting Improves Zinc Smelting Profitability

Mitsui Mining & Smelting is in harder time to make money due to higher raw materials cost and peaking metal prices. Senior managing executive officer Yoshiaki Kitagawa of the firm said the firm tries to improve the zinc smelting profitability by increasing recycled zinc materials weight from current 30% to 50%. Mr. Kitagawa said the higher cost hits the zinc smelting, which uses one tonne coke and 2 tonnes concentrate for one tonne distilled zinc. He said the firm tries to minimize the cost with more recycled materials weight for the smelting by expanding zinc recovery from steel making dust. Mr. Kitagawa said the zinc demand keeps increasing for galvanizing steel every year at home and abroad while the distilled zinc demand slows down. He sees Chinese major earthquake had no major impact on zinc market while zinc market at London Metal Exchange decreased to less than US$ 1,900 per tonne from US$ 2,500 just after the quake. He said some zinc smelters stop the operations but the smelters could resume the operations sooner or later. Mr. Kitagawa said the firm tries to explore zinc resources in Peru with annual 300 million yen budget. The firm focuses on potential resources around Huanzala mine. Mr. Kitagawa said the lead battery availability is better than before but is still tight while the lead ingot price increases due to the cost push.