ZINC (Data in thousand metric tons of zinc content, unless noted) Domestic Production and Use: The value of zinc mined in 1995 was about $700 million. Essentially all came from 25 mines, and 74% of it came from only 5 mines. More than 88% of the total mine output was from Alaska, Missouri, New York, and Tennessee; Alaska alone accounted for about one-half. Three primary and seven secondary smelters refined metal of commercial grade in 1995. About 75% of slab zinc consumption was in Illinois, Indiana, Michigan, New York, Ohio, and Pennsylvania. Of the total slab zinc consumed, about 53% was used in galvanizing, 20% in zinc-base alloys, 13% in brass and bronze, and 14% in other uses. Zinc compounds and dusts were used principally by the agricultural, chemical, paint, and rubber industries. Major coproducts of zinc mining and smelting were cadmium, germanium, lead, silver, and sulfur. Salient Statistics--United States: 1991 1992 1993 1994 1995e/ Production: Mine, recoverable 518 523 488 570 600 Primary slab zinc 253 272 240 217 225 Secondary slab zinc1/ 122 128 141 139 140 Zinc from old scrap 119 132 109 116 120 Imports for consumption: Ore and concentrate 45 45 33 27 20 Slab zinc, scrap, and compounds 637 740 805 892 910 Exports: Slab zinc, scrap, and compounds 112 120 52 79 55 Ore and concentrate 382 307 311 389 400 Shipments from Government stockpile -- -- 18 39 15 Consumption: Apparent, slab zinc 933 1,040 1,140 1,190 1,230 Apparent, all forms 1,170 1,280 1,350 1,420 1,460 Industrial demand 835 964 1,090 1,180 1,210 Price, average, cents per pound: Domestic producers 52.8 58.4 46.2 49.3 53.0 London Metal Exchange, cash 50.7 56.2 43.6 45.3 47.0 Stocks, slab zinc, yearend 79 75 74 71 73 Employment: Mine and mille/ 2,100 2,300 2,500 2,700 2,700 Smelter primarye/ 1,500 1,500 1,300 1,000 1,000 Net import reliance2/ as a percent of industrial demand 24 30 45 42 41 Recycling: In 1995, an estimated 370,000 tons of zinc in waste and scrap, including 120,000 tons in old scrap, was recovered in the form of slab zinc, brass, zinc-base alloys, dust, oxide, and other chemicals. Another 40,000 tons of zinc in scrap was exported, whereas 45,000 tons was imported. Import Sources (1991-94): Ore and concentrate: Mexico, 46%; Peru, 32%; Canada, 11%; and other, 11%. Metal: Canada, 63%; Mexico, 11%; Spain, 7%; Peru, 6%; and other, 13%. Combined total: Canada, 61%; Mexico, 13%; Peru, 7%; Spain, 6%; and other, 13%. Tariff: Item Number Most favored Canada Mexico Non-MFN3/ nation (MFN) 12/31/95 12/31/95 12/31/95 12/31/95 Ore and concentrate 2608.00.0030 1.4›/kg 0.5›/kg Free 3.7›/kg on lead on lead on zinc content content content. Unwrought metal 7901.11.0000 1.5% ad val. 0.4% ad val. Free 5.0% ad val. Alloys, casting- grade 7901.12.1000 15.8% ad val. 5.7% ad val. 15.2% ad val. 45.0% ad val. Alloys 7901.20.0000 15.8% ad val. 5.7% ad val. Free 45.0% ad val. Waste and scrap 7902.00.0000 Free Free Free 11.0% ad val. Hard zinc spelter 2620.11.0000 1.2% ad val. 0.4% ad val. 1.2% ad val. 5.0% ad val. Zinc oxide 2817.00.0000 Free Free Free 5.5% ad val. Prepared by Zinc Specialist, (703) 648-4982. ZINC Depletion Allowance: 22% (Domestic), 14% (Foreign). Government Stockpile: Stockpile Status--9-30-95 Uncommitted Committed Authorized Disposals Material inventory inventory for disposal Jan.-Sept. 95 Zinc 273 1.9 273 8.2 Events, Trends, and Issues: Domestic mine production increased 5% in 1995, primarily because of increased output at the Red Dog Mine in Alaska, the leading producer in the United States. Exports of zinc ore and concentrates also increased slightly, to 400 tons. The United States is expected to remain the world's largest exporter of zinc concentrates and importer of zinc metal for at least the next decade, because of inadequate refinery production capacity. Available primary annual capacity in 1995 was 326,000 tons. Domestic zinc consumption continued its upward trend of the last 5 years, led by galvanizing and alloy production. The United States is the largest consumer of zinc and zinc products, but domestic metal production capacity accounts for less than one-third of the supply; Canada and Mexico were the leading sources of zinc to the United States. The North American Free Trade Agreement, which went into effect on January 1, 1995, lowered tariffs on zinc and zinc-containing products from Canada and Mexico. Only 8.2 tons of zinc was sold from the National Defense Stockpile through September. Sales did not begin until April because of a 6-month suspension of sales imposed by Congress in response to industry concerns. The fiscal year 1996 Annual Materials Plan (AMP) authorizes 45,359 tons for disposal. The FY 1996 AMP also includes a provision that suspends sales if the world price falls more than 5% below the price on the date of enactment. World Mine Production, Reserves, and Reserve Base: Mine production4/ Reserves5/ Reserve base5/ 1994 1995e/ United States 598 630 16,000 50,000 Australia 995 1,000 17,000 65,000 Canada 984 1,100 21,000 56,000 China 780 850 5,000 9,000 Mexico 382 380 6,000 8,000 Peru 665 700 7,000 12,000 Other countries 2,400 2,410 72,000 130,000 World total (may be rounded) 6,810 7,070 140,000 330,000 World Resources: Conventional identified zinc resources of the world are about 1.8 billion tons. Zinc-bearing coals, mostly in the central United States, also have a resource potential of millions of tons of zinc that could be recovered during coal beneficiation. Substitutes: Aluminum, plastics, and magnesium are major competitors as diecasting materials. Aluminum, steel, and plastics substitute for galvanized sheet. Plastic coatings, paint, and cadmium and aluminum alloy coatings replace zinc for corrosion protection; aluminum alloys are used in place of brass. Many elements are substitutes for zinc in chemical, electronic, and pigment uses. e/Estimated. 1/Recovered from both new and old scrap. 2/Defined as imports - exports + adjustments for Government and industry stock changes. 3/See Appendix B. 4/Zinc content of concentrate and direct shipping ore. 5/See Appendix C for definitions. Mineral Commodity Summaries, January 1996