Nyrstar's Auby zinc operation on care and maintenance from Jan (updated)

Nyrstar NV

16/12/2021 17:10

(Adds detail, background)
    By Pratima Desai
    LONDON, Dec 16 (Reuters) - Nyrstar's Auby zinc operations
will be placed on care and maintenance from the first week of
January 2022 in response to significantly higher current and
projected future power prices in France, the company said on
Thursday.
    "Power prices, already at historically high levels across
Europe have continued to rise in recent weeks in France, in
excess of neighbouring European countries," the Belgian listed
company  NYR.BR  said in a statement.
    This, Nyrstar said, was because of "low availability of
nuclear power, high carbon-related costs passed on by power
companies and reduced fixed-price allowances for industry".
    "The price outlook for electricity prices in France in early
2022 indicates continued high prices and significant
volatility."
    French power giant EDF  EDF.PA  said on Wednesday it had
found faults on pipes in a safety system at its Civaux nuclear
power station and shut down another plant because it used the
same kind of reactors.  urn:newsml:reuters.com:*:nL8N2T11U6
    Planned maintenance will be brought forward and investment
will continue, Nyrstar said. 
    "There will be no impact on permanent employment at the
operation, which employs 297 people in total. Employee duties
will be redirected to focus on maintenance, training and
investment projects while the electrolyser is not producing
zinc."
    Nyrstar did not say how much zinc production would be lost
or provide the production capacity of its three European
smelters.
    Metal industry sources say Nyrstar has the capacity to
produce 720,000 tonnes of zinc in Europe, with 300,000 of that 
at Budel in the Netherlands. 
    Global zinc supplies this year are estimated at around 14
million tonnes.
    Benchmark zinc  CMZN3  jumped after the Nyrstar news to
$3,482 a tonne, the highest since Oct 25.
    Nyrstar in October cut production by up to 50% at its three
European zinc smelters -- Budel, Balen in Belgium and Auby due
to the soaring price of electricity.  urn:newsml:reuters.com:*:nL1N2R90G2
    
    

 (Reporting by Pratima Desai; editing by Kirsten Donovan)
 ((pratima.desai@thomsonreuters.com; +44 207 513 5681;))