October 07, 2008

Griffin to suspend zinc sales due to price weakness

Metals Insider reported that UK listed junior Griffin Mining has decided to suspend sales of zinc concentrates from its Caijiaying mine in China until the new year due to what it said it believes is a temporary retracement in the zinc price.

Griffin said. that “The company believes that the relatively low zinc concentrate prices currently being offered are a function of the significantly greater exports of physical zinc from China as exporters seek to gain financial benefits which will be abolished at year end.”

Griffin added that “It will therefore maximize value by stockpiling zinc concentrate at the mine site rather than continue sales at current prices.”

Caijiaying produced 10,983 tonnes of zinc in concentrates during the H1 of 2007.