Nyrstar's Auby smelter to resume zinc output at reduced rate

Nyrstar NV

19/03/2022 13:08

LONDON, March 19 (Reuters) - Nyrstar's  NYR.BR  Auby zinc
operations in northern France will resume production at reduced
capacity over coming weeks after being placed on care and
maintenance in January in response to high power prices, the
Belgium-listed company said.
    Production cuts in Europe, worries about supplies and
shortages pushed zinc prices  CMZN3  on the London Metal
Exchange to a record high of $4,896 a tonne earlier this month. 
    "The restart of Auby allows Nyrstar greater flexibility to
efficiently manage the group’s production across its three
European sites, with anticipated total production cuts of up to
50%", Nyrstar said.
    "Electricity prices across Europe remain at historically
high levels meaning it is not economically feasible to
operate any of our sites at full capacity."
    Last October, Nyrstar cut production by up to 50% at its
three European zinc smelters - Budel in the Netherlands and
Balen in Belgium as well as Auby - due to the soaring price of
electricity.
    Metal industry sources say Nyrstar has the capacity to
produce 720,000 tonnes of zinc in Europe, with 300,000 of that
at Budel.
    Europe accounts for around 15% of global supplies of zinc
estimated at about 14 million tonnes this year.

 (Reporting by Pratima Desai and Zandi Shabalala; Editing by
David Holmes)
 ((pratima.desai@thomsonreuters.com; +44 207 513 5681;))