Noranda Income Fund Unit T.NIF.UN

world zinc production

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Zinc prices continue to climb. At some point Glencore is going to bring back online the tonnage they took offline a couple of years ago. They will not be the only ones. Miners historically open new mines in response to market fundamentals. Contrary to what the press may suggest there is zinc out there to be mined, it is just a question as to what price will bring it out. New supply, especially Glencores should be positive to NIF. and additional supplies should also raise the spot and contract rates. Although there is little information out there as to the number of inefficient smelters being shuttered, I have to believe some of this capacity is gone forever which should also bode well for us. We may be in a better position going forward than we think as our income is stable for a little while as the world supply situation sorts itself out.