Canadian exploration company Osisko Metals expects a zinc deficit in the medium-term based on mine closures and a handful of zinc developments in the global pipeline. Its North American zinc mine production is expected to drop 35pc in four years.
Osisko Metals declared that Pine Point has the potential to become Canada’s largest zinc-lead mine to produce a premium zinc concentrate. Osisko discovered high-grade zinc deposits grading at 31.1pc while drilling at 27.5 meters in its zinc-lead mining project at Pine Point in Northwest Canada.
In its April presentation, the company said a shift towards a green and sustainable economy post-COVID would boost infrastructure and increase global base metal demand.
Pine Point is expected to have an average annual production of 327mn lbs of zinc and 143mn lbs of lead. The output would be clean, high-grade concentrates according to global standards.
Demand for zinc will rise on the back of construction and infrastructure stimulus across the globe. First-use of zinc accounting for about 60pc of zinc will be for galvanizing, 14pc for diecasting, 10pc for brass semis and castings, and 9pc for oxides and chemicals. Construction sector consumes around 50pc of the zinc products while infrastructure accounts for 16pc and 21pc for transport. Approximately 6-7pc is consumed by consumer products and industrial machinery.