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Xstrata cuts down on zinc as demand falls
Bill Condie5 Dec 2008
Miner Xstrata is to scale back zinc and lead output at one of its key Australian mines as global demand continues to slump.
It will cut production at its McArthur River zinc mine in the Northern Territory to two million tonnes from 2.5 million.
In July, Xstrata and Canadian miner Teck Cominco announced the closure of the Lennard Shelf zinc mine ahead of schedule, also in response to low zinc prices as well as a high Australian dollar.
Zinc, used mainly to galvanise steel, has been hit by slowing construction in China. The price has fallen to four-year lows of about $1076 a tonne.
The London-listed Swiss mining company's main zinc producing mine is at Mt Isa in the Australian state of Queensland. It says it has no plans to make changes or cutbacks there.
Xstrata, which is also the fourth-biggest nickel producer in the world, earlier announced that it was extending a shutdown at a plant in the Dominican Republic.
