What impact will the new Russian export duty have on zinc mine costs?

In late September, the Russian government introduced plans for customs duties on the majority of the country’s most significant exports from October 1 onwards. The duty rate will impact most commodities, including ores, starting with the HS code 26, which incorporates zinc, copper and lead concentrates. The duty rates will be placed on the ‘custom value’ on a sliding scale from 0–7% based on the US dollar-Russian rouble exchange rate, and will remain in effect until the end of 2024. In this Insight, we explore what impact the duties will have on production cash costs for Russian zinc-producing mines in 2024.

The zinc-producing mines in Russia are expected to produce a total of 502,000 t of zinc-in-concentrate in 2024. The majority (71%) of the mined zinc output will be supplied by the Ozernoye, Kyzyl-Tashtygskoe, Dalpolymetall and Uchalinsky mines. The Russian zinc-producing mines are also forecast to have a combined 222,000 t of lead-in-concentrate and 214,000 t of copper-in-concentrate during the year. Gorevsky, Aleksandrinskoe, Ormet, Novoshirokinskoye and Gaisky will account for 65% and 54% of the lead and copper production, respectively.

Read our full insight to learn more.

CRU appoints new VP Sales, South America & Country Manager, Chile

Last 2nd November, we announced the appointment of Mario Molina as our new Vice President of Sales, South America and Country Manager of CRU Chile.

In his new role, Mario will increase CRU’s current market share by supporting existing client relationships, establishing new ones and strengthening the CRU brand in the Latin American (LATAM) region. Alongside this, Mario will bolster the Chile-based team by increasing the headcount and office footprint.

Mario’s appointment comes at an important time for the LATAM region, as it shores up its position as a major global commodity provider. CRU has been serving the needs of clients in the region since 2006; with over a dozen analysts and consultants providing market-leading analysis and insights for the region.

Prior to joining CRU, Mario spent over a decade in various sales roles at Emerson Electric, responsible for account sales in the LATAM region before taking on the global portfolio for metals and mining.

Mario brings a wealth of knowledge of the commodity marketplace in Latin America. Combined with region-specific business development skills, this is the perfect fit for CRU as we look to consolidate our position in the LATAM market. We are excited to see the further regional evolution of CRU under Mario’s leadership and pleased to welcome him to the team.

Aaron Gill

Global Head of Sales at CRU

I feel privileged to be a part of such a prestigious company as CRU; this is an amazing opportunity for me to leverage my regional experience to grow CRU's brand in the local market, connecting with clients to serve as their strategic business partner. In addition, I am excited to expand our local capabilities with the fantastic team we have at CRU Chile.

Mario Molina

VP Sales, South America & Country Manager, Chile

LME Week 2023 | CRU Breakfast Recording - Core vs Critical Metals Session

CRU Breakfast 2023 was designed to offer a comprehensive understanding of the core and critical commodities, assessing their potential impacts on the global economy, and evaluating their role in the current Energy Transition.

This year CRU experts explored the strategic outlook, medium-term, and long-term perspectives of global commodity markets.

Session 1: Core vs Critical Metals

The opening session included two presentations from our CRU experts presenting the case for "core" and "critical" metals. This set the stage for a follow-up discussion involving Jaguar Land Rover and European Commission representatives, who shared their views on the industry's focus and their responsive actions, examining the potentially transformative impact of energy transition versus traditional demand drivers in the mining industry.

Join CRU experts, European Commission and Jaguar Land Rover representatives in a discussion covering:

• CRU's in-depth definition of criticality;
• Debates and potential impacts of labeling Copper as a critical material;
• European Commission’s view on the EU’s Critical Raw Materials Act and its potential supply chain effects;
• Jaguar Land Rover’s strategic approach to sourcing critical materials for future vehicle production.

Watch the recording now to gain more insights into core and critical commodities, and stay tuned for more CRU Breakfast 2023 recaps.

UPCOMING EVENT

World Copper Conference Asia 2023

We are proud to announce the World Copper Conference Asia, which is part of Asia Copper Week 2023. The conference is in collaboration with CESCO and China Minmetals Corporation and will take place on November 15-16, 2023, in Shanghai.

The event will cover critical issues such as the new smelter capacity developments in ASEAN and their projected impact on trade flows. Factors limiting supply growth, including country risk in the African copper belt and social challenges in South America. The event will also challenge key assumptions underpinning the long-term outlook, such as copper intensity in electric vehicles. CRU brings are wealth of insight and a cohort of expert speakers with a deep understanding of the copper concentrates, scrap and refined copper markets, which is an even more important TC/RC negotiation-focused event.

Learn more about the event and sign up for updates here.