Author:Century Mining Database

Newest data from Standard and Poor Int'l Metal and Mining Department shows, following the continuing recovery of the mining sector, the bulk of the commodities budget will likely increase this year.  After the bullish year of 2017 on Zinc ore prices, its estimated to continue its lead this year.
 
Driven by the huge increase in Zinc prices since 2016, several junior companies had began exploration projects in 2017, causing a substantial increase in the global zinc mine exploration budget.  According the Standard and Poor's data, at total of 199 zinc and lead mining companies estimated exploration budget reached US$489.4 millions, a 29% increase against the figures in 2016 where 167 zinc and lead companies estimated budget was US$378.4 million.

Zinc mining exploration budget had reached as high as US$968.8 Million back in 2008, but following the losses from the financial crisis, the budget had dropped by 2/3 in 2009. Reuters had reported: from 2010 to 2016, the mining expenditure of Zinc was directly linked to the overall fate of the Mining industry, and not only to the price of Zinc. Due to the lack of sufficient financing opportunities for many junior exploration companies, medium to large-sized producers income was reduced, forcing many of them to cut back on all metals exploration budgets.  Reuter also added, even though the price of zinc has been recovering along with copper since 2016, Zinc mining budget remained in decline due to either insufficient or delayed market adjustments. "Following the return of interest by investors, the market demand for precious metals, zinc and lithium will attract more interest, and the estimations will likely receive biggest increases.
 
During the first 7 month of 2017, the total import quantity of Zinc ore and zinc concentrate to China increased by 26% , and the domestic production of zinc declined. Approximately half of the zinc is used in electroplating, and China's continued growth in steel manufacturing has substantiated the foundation for zinc markets. Standard & Poor's metals and Mining Department stated: the average price of zinc in 2017 was US$1.31 per pound, we estimate the average price to exceed $1.46 per pound in 2018, and maintain at $1.41 for 2019.
 
Latin America was the largest zinc mining region for 2016, their production estimate for 2017 makes up 38% of global output. Peru is currently the largest exploration country for zinc, with 2017 estimates at US$813.3 Millions reaching 50% increase year on year, rising from its global estimate share of 14% to 17% for 2016. China's zinc production makes up 37% of global capacity, their estimate figure for 2017 was US$52.8 million, and $50 million in 2016. During the same time, estimates from Mexico increased 53% for 2017 to US$50.5 million, and estimates for USA also more than doubled.