Nyrstar, the world's biggest zinc producer, aims to increase production from its own mines to about 30 percent over the next year from its current share of 21 percent, its chief executive said on Friday.
The Belgian company recently expanded into higher-margin mining activities and has bought mines or stakes in mines in the USA, Greenland and Peru. Nyrstar also signed a long-term contract to buy zinc concentrate from Finland’s Talvivaara.
"The profitability of mines is much higher than for smelters," Chief Executive Roland Junck told reporters at a briefing on Friday. He said the company aimed for 50 per cent own-mine production over the next five years, although that would depend on available opportunities.
Mr Junck said that although Nyrstar had been in talks to buy Anglo American's zinc business, it was unlikely to do so on the grounds of cost, nor would it expand its mining business to China as there are places closer to its smelters..
"The best way to take advantage of China is to take advantage of the price of zinc, which is fuelled by Chinese demand," Mr Junck said.
"I like the idea of clusters ... Ideally I would like to have some more mines in Peru," he said.
Mr Junck said that ee expected the zinc price to remain stable for now.
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