In mine supply squeeze, Aussie zinc deal turns to gold for traders Concord Resources

It was a sudden but very definite supply shortage in the zinc market. From mid-March Covid-19 lockdowns in Peru, Bolivia, South Africa and Mexico saw some of the world’s top exporting mines close or become shut off from shipping metal to customers.

Traders and smelters were left scrambling to buy concentrates - partially processed metal ores - paying up to buy from the clutch of mines still selling to the market and cover big shortfalls in expected deliveries from those newly closed.
But one company was able to leverage the supply gap: Concord Resources, a London-based firm set up in 2015 and backed by Dwight Anderson’s Ospraie Management, Pala Investments and gold producer MKS PAMP.
The key: an offtake agreement with Australia’s New Century Resources that had been spurned by much of the rest of the market.

In deals totalling 100,000 tonnes for April, May and June shipments, concentrates were shipped from the port of Karumba, Queensland, to Concord customers...

Published

Archie Hunter

June 10, 2020

10:27 GMT

London