Processing at Bisha has been on hold since last week amid a fuel pinch, and clients have been alerted that cargoes could slip. Two people with knowledge of the situation said some purchasers of Bisha's zinc and copper concentrates were told last week the pause might run for around four weeks, with delivery timetables likely to be affected.
Eritrean information minister Yemane Gebremeskel said the processing plant stopped for routine maintenance and, citing the company's management, added that activity was expected to restart soon. Zijin said maintenance originally slated for around year end was pulled forward because of "a temporary, regional fuel shortage." The company said fuel supply has stabilized and it would "arrange work activities related to production in an orderly manner," but did not provide a timeline for processing to resume.
At Bisha, control and day-to-day operations are led by Zijin, with Eritrea's state mining company retaining a 45% interest. The mine turned out 83,000 metric tons of zinc along with 23,000 tons of copper last year.
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Eritrea and Ethiopia have severed diplomatic ties in recent weeks and are accusing each other of hostilities. Meanwhile, on the London Metal Exchange, zinc is up more than 20% this year - beating copper and aluminum - as limited mined ore has constricted supply. That squeeze has held back zinc production in China even as smelting capacity expanded.
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