Mining company Glencore’s bold strategy to take about a third of its zinc off the market in 2015 has largely been credited for the mineral hitting a 10-year high.
Glencore’s Lady Loretta and Mount Isa operations, as well as McArthur River in the Northern Territory, took the brunt of the 2015 supply cuts, with more than 500 jobs lost.
However, resource analyst Gavin Wendt said zinc was probably the best performing commodity in the past five years.
Zinc is currently trading at more than $US3,000 a tonne on the London Metal Exchange and earlier in October reached a 10-year high of $US3,308 a tonne.
“It’s reflective of very sound fundamentals associated with the commodity itself and by that I mean rising demand coinciding with a situation where supply has been restricted,” Mr Wendt said.
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