Sumitomo Corp Launches Bolivian Zinc Mining

Sumitomo Corporation announced on Tuesday the firm started the zinc concentrate shipment from San Cristobal, which is Bolivian silver, zinc and lead mine. The mine, in which Sumitomo Corp has 35% interest, started production of bulk concentrate containing zinc, lead and silver shipping the first bulk from Chilean Mejillones port on September 22. The mine shipped 9,100 tonnes of zinc concentrate for the first time to Asian smelter on October 18. The mine starts commercial operation and reaches full capacity by the end of the year. The mine with silver, zinc and lead containing deposit is located in 3,800-4,500 meters high land of southwest of Potosi. The mine has reserves with 15,000 tonnes for silver, 3.7 million tonnes for zinc and 1.3 million tonnes for lead. The mine plans to produce annual 550 tonnes of silver, 168,000 tonnes of zinc and 64,000 tonnes of lead for 16 years operations. The short supply is 4 years in a row through this year for zinc and 5 years in a row for lead, according to International Lead and Zinc Study Group. The demand expands for galvanizing steel and lead storage battery in China and emerging countries. The supply cannot meet the growing pace of the demand due to past slower development under lower price. San Cristobal mine is one of the largest silver, zinc and lead mines coming in 5 years. The zinc and lead production volume is in top 10 of existing mines. The new mine could contribute the short supply market as additional supply source. Sumitomo Corp purchased 35% interest in the mine from Apex Silver Mine in September 2006 joining the project. The mine has long term contracts with Japanese zinc smelters.