What if the zinc price falls further - how low do zinc prices go before mines close?
After the zinc price fell by 37% from its 2023 high and Boliden closing its Tara mine in Ireland. The cost structure of the zinc mining industry is now in focus amid concerns that other mines will be placed on care and maintenance. Wood Mackenzie’s mine cost data allows the identification of mines that are likely to be operating at a loss and judgements can be made on potential cuts to future supply from suspensions or mine closures. Not all mines at loss in the short term are likely to close for a number of reasons but a large proportion typically do. In this insight, we have reviewed previous zinc price downturns and resulting mine production losses to analyse the current cost structure to better quantify likely production losses from further price falls.