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Russia releases significant zinc concentrate plant after hold-ups connected to fire, United States sanctions

Russia's brand-new Ozernoye plant, located next to the country's biggest zinc mine, introduced zinc concentrate production on Wednesday, the business stated, after delays brought on by a 2023 fire and U.S. sanctions.

Ozernoye, located in a remote area about 200 km (124 miles). from the border with Mongolia, aims to process approximately 6 million. tons of zinc ore with output volumes of approximately 600,000 lots of. zinc concentrate when it reaches full capability in 2025.

Sanctions enforced in 2023 on Ozernoye's owner, metals. mogul Vladislav Sviblov, and his business by Washington and. London complicated the search to replace Western devices that. was ruined in the blaze.

The company stated on Wednesday that it had counted on domestic. technology to replace the devices.

The launch of Ozernoye is expected to assist relieve tight worldwide. supply of zinc concentrate which is being felt in top consumer. China this year with worldwide mine production heading for a 3rd. consecutive year of decline.

In spite of tight supply of the raw product, the global refind. zinc market is presently in surplus nevertheless. Zinc is used to. galvanise steel with the building sector being the main. market.

Experts at Macquarie expect the worldwide surplus of fine-tuned. zinc to grow in 2025 as both mine supply and smelter production. increase.

Ozernoye said that demand for its concentrate from purchasers in. the Asia region was sufficient.

Nations in the Asia-Pacific region are strategic markets. for our products. The capacity of these markets suffices. for product sales. There is interest in the concentrate from. major buyers, a company representative said.

He did not specify which other markets, apart from China, it. was targeting.

(source: Reuters)