Monday, February 23, 2009

Noranda Cuts Zinc Production

Noranda Income Fund has said that it will reduce production of sulphuric acid and zinc by approximately 20 per cent in March due to a lack of storage capacity.

Noranda's sales agent,Xstrata Canada Corp, has given notice that it is unable to arrange for the temporary storage of sulphuric acid in quantities equal to the current rate of production.

The Noranda Trust, which produces zinc and by-products at the CEZinc plant in Salaberry-de-Valleyfield, Quebec, said it will reduce production by 4,800 tonnes of zinc and 8,000 tonnes of sulphuric acid since its sulphuric acid storage capacity is almost full.

"The current economic conditions are very challenging, and the traditional purchasers of the fund's sulphuric acid have restricted their purchases because of cutbacks in their order books," Noranda said in a statement. "The reduction in production will negatively impact the fund's profitability."

Source: Canadian Press

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