Supply is also expanding elsewhere in the world, and the International Lead and Zinc Study Group predicts that production of refined zinc metal will rise by 6. The Drum has examined some Australian zinc miners whose production costs are low enough for them to emerge as winners. Kagara’s advantage is that it is a low-cost zinc producer, with cash costs of US57c a pound including byproducts at its Mount Garnet operation. The initial recoveries from the plant were in the 50 per cent range rather than the 75 per cent range forecast in the feasibility study, leading to a delay in the mine becoming cash-flow positive. Jabiru expects to release a resource estimate at Stockman early next year, with the first production in 2011. That will give it a zinc cash cost of just US20c to US30c, the lowest quartile of global cash costs, making it robust in any zinc market. read more

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