Metaleurop's decision to switch to secondary production at its Noyelles Godault ISF has highlighted the vulnerability of European and Asian zinc smelters at today's prices and TCs. Particularly vulnerable are the ISF smelters, which are right at the top of the zinc cost curve. Although feed costs are lower than for electrolytics, this only partly offsets the very high operating costs of these plants. As well as bulk concentrates, the ISFs typically take low grade and dirty concentrates, which attract higher TCs and also penalty payments. All are making heavy losses, with MIM's European ISFs at Avonmouth and Duisburg in the worst position. MIM is expected to shortly make an announcement regarding the future of these two smelters. The European and Australian ISFs have traditionally been major consumers of bulk concentrates, although in recent years they have also increased their intake of secondary materials. The loss of these plants would have a serious impact on the market for bulk concentrates, and in this feature we look at the supply of bulk concentrates and ISF feed requirements.Over the last ten years the number of bulk concentrate producers has fallen sharply, from a maximum of twelve in the early 1990s down to only three. Some were only intermittent producers, such as Pasminco's Rosebery, but there were also a number of significant producers, such as Mt Isa, Red Dog, Hellyer and Woodlawn. The latter two mines have now closed, but at Red Dog and Mt Isa bulk concentrates are no longer produced as finer grinding and better separation means that higher grade separate concentrates can now be produced without the need to produce a bulk to "clean up" the separate concentrates.
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