Sun, Jul 05 2009

Bulgarian lead, zinc mines face shutdown

Tue, Aug 19 2008 11:56 CET bydnevnik.bg 135 Views

Some of Bulgaria's zinc and lead mines may have to be shut down temporarily if the price of the two metals on global markets continues to fall, the executive secretary of the Bulgarian mining and geology chamber, Petar Petrov, said.

In case lead dips below $1300 and zinc falls below $1500 per ton with no immediate price recovery, all Gorubso mines will certainly close down, he said. Production costs will become prohibitive and will not be offset at these low metal prices.

Lead and zinc are mined at the Gorubso-Zlatograd, Gorubso-Kardjali, Gorubso-Laki and Roudmetal mines, said Petrov, adding that Roudmetal has been a loss-maker in the past year.

Total closure would be a last-ditch measure, Valentin Zahariev, majority owner of Intertrust which has 98 per cent of local smelter Lead and Zinc Complex (OZK), said. "It would be logical to simply put up for sale the loss-making mines."

Zahariev said that the possible closure of local miners would have not effect on OZK because it ships 80 per cent of input materials from abroad.

Mining industry analysts concede that it is too late to invest in underground mines now that prices are on the decline.

Read the full story on Dnevnik.bg

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