Investor Presentaiton
ZINC MARKET
Rapid renewables deployment could see
zinc demand double over the next two
decades, as zinc coatings are critical in
protecting wind and solar infrastructure
Zinc primary demand
(kt Zn)
25,000
China's supply is constrained
by rising environmental
regulations and falling grades
Primary zinc demand in a 1.5°C scenario increasing ~1.9x to 24Mt
6x increase in renewable energy capacity to 2050, with wind and
solar increasing by 10x and 14x, respectively, in this scenario
Projected demand and supply gap
by FY31 equivalent to requiring more
than 10 new Taylor (a) sized projects
YoY growth in Chinese mine supply and zinc price
(kt Zn, LHS; US$/t, RHS)
200
Limited Chinese mine supply growth seen
despite higher zinc prices post-2016
China accounted for 32% of global primary supply
in 2022, the single biggest contributor by country
20,000
15,000
10,000
5,000
+90%
2022
2040e
■Construction and infrastructure
■Consumer goods and machinery
■Transportation
Additional demand in a 1.5°C scenario
Source: South32 analysis
Notes:
a.
Based on Taylor Deposit pre-feasibility study with 130kt per annum steady state payable zinc production.
-200
2016
2017
2018
2019
2020
2021
2022
2023
Chinese mine supply growth (LHS)
―LME Zinc Price (RHS)
Source: South32 analysis, LME
SLIDE 34
III
SOUTH32
5,000
4,000
3,000
2,000
1,000View entire presentation