Investor Presentaiton
ZINC MARKET
III
SOUTH32
Strong demand in transport, consumer and
industrial sectors, with rising intensity of use
Rapid deployment of wind and solar
infrastructure to create new demand
Supply expected to fall 3.5% pa to 2030,
requiring investment in new mine supply
and inducement pricing
Zinc primary demand
(kt Zn)
25,000
20,000
15,000
10,000
5,000
2020
+100%
2040
■Construction and infrastructure
■Consumer goods and machinery
■Transportation
Renewable infrastructure in 1.5C scenario
Source: South32 analysis and Wood Mackenzie.
Demand
•
•
Zinc provides a protective coating in wind turbines,
and allows for higher energy conversion in solar
panels
In a 1.5°C (climate change) scenario, we see:
•
6x increase in renewable energy capacity to
2050, with wind increasing by 10x and solar
by 14x
Primary zinc demand increasing 2x to 24Mt
Supply
Conversely, current mine supply expected to fall by
3.5% pa (~270kt pa) to 2030
Mine depletion, new builds with lower average
grades and longer approval pathways will continue
to constrain supply
Pricing needed to induce new marginal supply to
support average prices in the long term
SLIDE 26View entire presentation