Dugald River on track to be top 10 global zinc producer

MMG’s Dugald River zinc mine in Queensland has achieved commercial production.

The Chinese controlled, ASX-listed company reported this week that commercial production started on May 1.

Dugald River is expected to produce between 120,000–140,000t of zinc in 2018.

MMG executive general manager operations – Africa, Australia and Asia, Mark Davis, said the milestone confirmed the ramp up of the plant was progressing on schedule, with commercial production reached in line with guidance to the market.

“Dugald River is a world-class operation that has been delivered under budget and ahead of schedule. Its successful achievement of the commercial production milestone inside five months of first concentrate delivers on our commitment to drive value for shareholders,” he said.

“MMG is re-emerging as a major zinc player – when Dugald River completes ramp up and is operating at design rates it will be one of the world’s top 10 zinc mines.

“We remain positive about the long-term fundamentals for zinc and Dugald River has come into production at a time of tightening global supply and strong prices.”

Commercial production at Dugald River adds to other recent milestones at the site, including the launch of zinc production last November.

MMG’s first shipment of 10,500t of zinc concentrate, produced as part of commissioning activities, departed the Port of Townsville a month later.

In the March 2018 quarter, Dugald River produced 28,522t of zinc from commissioning activities.

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