12 Sep Nevsun sells & ships first zinc concentrate from Eritrea mine
Canadian base metals producer Nevsun Resources (TSX:NSU) has sold and shipped the first 1,000t of zinc concentrate from its Bisha mine in Eritrea.
The shipment was packed at the Port of Massawa and sailed on the 7 September, after attracting various offers.
Cliff Davis, Nevsun CEO said: “We are pleased to have a high-quality zinc product coming to market in an environment of rising zinc prices. Bisha is the only significant new zinc concentrate coming to market in 2016 and we are aggressively courted for offtake by various customers.”
The achievement followed the completion of a US$80 million plant expansion, earlier this year, to add a zinc circuit capable of processing more than 225 million pounds of zinc and 45 million pounds of copper a year.
Research and consultancy group Wood Mackenzie reports that the outlook for the zinc market over the next few years is positive, with the price forecast to reach more than $3,800p/t in 2018.
Nevsun is scheduled to load further zinc shipments in the coming weeks and is building up to commercial production, which is planned for the fourth quarter.