DJ reported that Belgian metals company Nyrstar NV restarted both its Clarksville plant in the US and the Budel smelter in July due to higher metal prices and lower energy costs and is still reviewing its options for the idled Balen smelter in Belgium.

Output at Clarksville was reduced by 40% or around 25,000 tonnes while Budel was cut by around 28%, taking total cuts to around 190,000 tonnes in the H1 of the year in addition to 35,000 tonnes of cuts in 2008. Balen produced about 284,000 tonnes of zinc in 2008 and was put on care and maintenance in November.

Mr Roland Junck CEO of Nyrstar said that "Whilst in the short term we believe that markets are likely to remain volatile we maintain our belief that the underlying fundamentals for medium to long term improvements in resources and related asset prices remain intact."

Capacity at all these operations was originally reduced due to weak demand and slumping zinc prices, which fell in line with the deteriorating global economy. 3 month zinc prices on the London Metal Exchange have risen some 79% since the start of the year although at around USD 1,860 per tonne now are still a long way off their November 2006 peak of USD 4,580 per tonne.

(Sourced from Dow Jones)