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| MMG Ltd |
MMG Ltd, a Chinese mining company under China Minmetals Corporation, has signed a multiyear agreement to supply 100,000–120,000 tonnes per year of zinc concentrate to fellow group member Minmetals North-Europe. The supply will come from MMG’s Dugald River mine in Queensland, Australia, spanning the years 2025 through 2027.
The Dugald River mine, operating at full capacity, produces about 370,000 tonnes annually of zinc concentrate. The pricing structure for this agreement will be tied to the London Metal Exchange (LME) for zinc and the London Bullion Market Association (LBMA) for silver, as the concentrate includes silver by-products. An annual price cap of $200 million has been proposed to help manage market risk for both parties.
This vertically integrated deal strengthens China’s metals supply chain, ensuring consistent feedstock for Minmetals' refining operations in Europe and reinforcing China's control over critical materials like zinc—vital for galvanizing, batteries, and alloys. It comes as global zinc demand grows across infrastructure, automotive, and renewable energy sectors.
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