FY22 Overview & Safety Program Update
ZINC MARKET
III
SOUTH32
Rapid renewables deployment and the
requirement to protect wind and solar
infrastructure could see zinc demand
double over the next two decades
Zinc primary demand
(kt Zn)
25,000
We expect China's supply to have peaked
with environmental regulations and falling
grades limiting future potential mines
Primary zinc demand in a 1.5°C scenario increasing 2x to 24Mt
6x increase in renewable energy capacity to 2050,
with wind and solar increasing by 10x and 14x respectively
2030e supply and demand gap equivalent
to more than three new Hermosa Taylor(a)
sized projects required each year
Chinese mine supply growth and zinc price
(kt Zn, LHS; US$/t, RHS)
600
Limited Chinese mine supply growth despite
sustainably higher zinc prices post-2016
China accounted for 32% of global primary supply
in 2021, the single biggest contributor by country
6,000
20,000
15,000
10,000
5,000
+100%
2020
2040e
■Construction and infrastructure
■Consumer goods and machinery
■Transportation
Additional demand in a 1.5°C scenario
Source: South32 analysis
Notes:
a.
400
200
-200
4,000
2,000
-400
2012 2013
2014 2015 2016 2017 2018 2019 2020 2021
YTD Aug-22
annualised
Chinese mine supply growth (LHS)
―LME Zinc Price (RHS)
Source: South32 analysis, LME
Based on Taylor Deposit pre-feasibility study with 130kt per annum steady state payable zinc production. Refer to important notices (slide 2) for additional disclosure.
SLIDE 31View entire presentation