Teck sells Red Dog zinc concentrates into China for first time, opening market [UPDATED]

Teck Resources has sold formerly prohibited zinc concentrates from its Red Dog mine into China, a move that could lead to a more liquid global spot market for the commodity.

Teck sold a parcel of 1,000 tonnes of Red Dog zinc concentrates to Henan Yuguang Zinc Industry Co, a major Chinese smelter, earlier this month, four sources with knowledge of the matter told Metal Bulletin.
Teck Resources and Henan Yuguang Zinc Industry Co declined to comment when being contacted by Metal Bulletin.
The deal takes advantage of a 2017 change in Chinese customs policy for imports that switched 0.30% cadmium content limits from “mandatory” to “recommended”.
A company source confirmed with Metal Bulletin on Monday July 30 the parcel of Red Dog zinc concentrates being sold into China contains over 0.30% cadmium content.
“This is the first time ever that Chinese customs has approved imports of high cadmium content,” a smelter source in the Chinese zinc market, who declined to be named because the matter is commercially sensitive, said.

If the deal precipitates further shipments of Red...


Archie Hunter

Julian Luk

July 30, 2018

10:36 GMT