Marketing aspects for zinc concentrates

"For the assent of any new mining project it is essential to determine a realistic value of revenue from the sale of concentrates.A description of the market factors influencing the concentrate terms will be presented along with a detailed review of historical terms of a smelter contract for zinc concentrates. OverviewFor the assessment of any new mining project it is essential todetermine a realistic value of revenue from the sale of concentrates.This applies at all stages of assessment through to the final feasibilitystudy. In forecasting revenue for a zinc mine the followingfactors must be considered:(a) mill recovery and zinc concentrate grade;(b) metal price forecast for all payable metals;(c) smelter terms; and(d) other selling costs.Normally, data from test work are used to determine mill recovery and concentrate grade.Market forecasting, and indeed all economic prediction is an inexact science and probably will always remain so. We have our econometric models our input/output models and a lot of other tools. But they are of no help in predicting the unpredictable. OPEC's huge increase in the price of oil was certainly the most dramatic example of this. It had a tremendous effect on the cost of producing most products world wide and on the price of these products. Any forecasts made prior to the OPEC action were obviously proven wrong."