Zinc and copper - two exciting raw materials
According to the International Copper Study Group (ICSG), 2018 brought the copper market the highest deficit in four years with a deficit of 387,000 tonnes. This was due to maintenance work and also involuntary failures of copper melts. Experts continue to anticipate a tense situation, which should support the price of the red metal. Not least because the Grasberg mine in Indonesia, the second largest in the world, is moving from open pit to underground mining, which will shorten production considerably.
On the demand side, China's economic measures will further boost copper consumption. A rising copper price can be benefited by shares of companies that own copper in the ground. For example, with Aurania Resources.
Aurania Resources - https://www.commodity-tv.net/c/search_adv/?v=298881 - has already found high grade copper and silver on its Lost Cities Cutucu project in southeastern Ecuador. Up to 12 percent copper (and up to 166 grams of silver per tonne of rock) was found in samples. In addition to this flagship project, the young exploration company is pursuing further projects with copper and precious metals.
The price of zinc has also developed very well, as inventories have fallen. However, the production of zinc concentrate is currently being expanded, which could reduce the supply deficit somewhat. About half of the extracted zinc is used for galvanizing metals. Mine closures and production restrictions are responsible for the zinc deficit, which is currently around 1.1 million tonnes. Strong demand for zinc comes from Germany, Belgium, the USA and China.
The largest producer is China. There are also high-grade zinc projects in Peru, for example. These include Zinc One's Bongará Project and Charlotte Bongará Project in northern Peru - https://www.commodity-tv.net/c/search_adv/?v=298928. Bongará already produced in 2007 and 2008, but was closed at that time due to the global financial crisis and the fall in the zinc price at that time.
Current company information and press releases from Aurania Resouces (https://www.resource-capital.ch/en/companies/aurania-resources-ltd.html).
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