Ozernoye begins zinc-concentrate production

Concentrate production begins

Ozernoye began producing zinc concentrate in Russia on September 4, 2024, the company told Reuters. The opening followed delays linked to a fire in 2023 and US sanctions. The company said it had used domestic technology to replace equipment destroyed in the fire.

The plant’s full-capacity target for 2025 was to process up to six million tonnes of ore annually and produce up to 600,000 tonnes of concentrate containing 53% zinc. These figures describe planned ore throughput and concentrate output, rather than a completed year of production.

The company identified Asia-Pacific buyers as strategic customers and reported interest from major purchasers. It did not identify additional target markets beyond China. Reuters reported the site was about 200 kilometres from the Mongolian border.

Reading the production measures

The US Geological Survey’s January 2024 zinc summary reports mine production in terms of zinc content. Its estimated 2023 figures were 310,000 tonnes for Russia and twelve million tonnes worldwide. USGS expresses both the Russian and world mine-production estimates as metal content. Its chapter separately reports refined-metal production, consumption, trade and reserves, with estimated values marked in the tables.

Metal use and recovery

USGS identified galvanized steel as the largest reported use of zinc in the United States. It also listed:

• Brass and bronze;
• Zinc-base alloys;
• Other applications.

The same summary distinguishes mining from refined-metal production. For the United States, it estimated 750,000 tonnes of zinc in concentrates and 220,000 tonnes of refined zinc in 2023. Refined production includes primary and secondary metal. Secondary materials include galvanizing residues and crude zinc oxide recovered from electric-arc-furnace dust. These feedstocks can supply smelters. USGS lists the different stages and material streams separately in its statistics.

A dated view of refined-metal stocks

USGS’s April survey, published on July 10, provides an earlier snapshot of Special High Grade refined zinc held in London Metal Exchange warehouses. End-April stocks totaled 254,875 tonnes, around 6% below March but almost five times the April 2023 level. All of those listed stocks were in Asia. The figures describe refined-metal warehouse stocks at that date, distinct from the concentrate produced at Ozernoye.

The survey separately reported 80,800 tonnes of off-warrant zinc in LME-approved warehouses, up from 48,168 tonnes in March. Of that off-warrant total, 81% was held in Asia, 16% in the United States and 3% in Europe. Its statistical notes also caution that apparent consumption can differ from actual consumption when unreported inventories change. The April observations provide historical context; they do not establish warehouse holdings at the September opening.