The International Lead and Zinc Study Group (ILZSG) has published a press release outlining forecasts drawn from its meeting in London from 26-28~(th) October. Distribution of its detailed forecasts is restricted but the commentary from the press release does name countries where ILZSG expects zinc and lead mine production to either increase or decrease substantially. For both metals, ILZSG and CRU expect similar growth rates this year, but we forecast stronger growth in 2006. ILZSG and CRU both forecast world zinc mine production growing by about 3.5 percent this year. However, CRU forecasts growth of 7.1 percent in 2006, much higher than ILZSG's forecast of 4.2 percent. ILZSG points to recent expansions and mine openings in Australia, China and India. We agree that production in these countries is increasing but also note that Kazakhmys' mines are boosting Kazakh production and that UGMK's mines are lifting Russian output. ILZSG also points out that production in Canada has fallen because of the recent closures of Bell Allard, Bouchard-Hebert and Louvicourt. But we would note that these losses are being partly offset by increasing production at Kidd Creek and Bathurst.
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