Glencore Boosts Zinc Production by 27% in First Half of 2024, Driven by Canadian Acquisition and German Smelter Restart
Glencore has reported a significant 27% increase in zinc metal production during the first half of 2024, reaching 440,100 tons. This growth, representing an increase of 94,800 tons compared to the first half of 2023, is attributed to the consolidation of the CEZinc smelter in Canada and the restart of the Nordenham Zinc smelter in Germany.
The multinational conglomerate, which owns the Asturiana de Zinc (Azsa) plant in Castrillon, Spain, explained that the incorporation of Canada Electrolytic Zinc Limited (CEZinc) into its operations since April 2023 was a key factor in the increased production. CEZinc, located in Salaberry-de-Valleyfield, Quebec, is the largest zinc smelter in eastern North America and has now joined Glencore's portfolio of zinc metal factories.
Additionally, the February 2024 restart of the Nordenham Zinc smelter in Lower Saxony, Germany, which had been on hold since November 2022 due to rising energy costs following the Russian invasion of Ukraine, contributed to the overall production increase.
Asturiana de Zinc remains a major player in Glencore's zinc production, accounting for 72.3% of the company’s total zinc output in 2023. The plant in Saint-Jean-de-Nieva, Spain, remains among the top three zinc producers globally, with a production of 544,192 tons last year.
Despite the production growth, Glencore noted that zinc prices remained relatively stable during the first half of 2024, reflecting a tight zinc concentrate market and ongoing supply disruptions. The company also reported that treatment costs (TC) for zinc ore have risen, indicating higher costs for zinc ore producers to convert ore into metal. Global zinc demand was driven largely by Chinese imports, with 180 kilotonnes of net zinc metal imports between January and May 2024.
