Zinc is surging back into the spotlight, with recent price rallies on the London Metal Exchange (LME) underscoring its strategic importance to global infrastructure and construction.
Since a mid-March 2026 slump, zinc prices have risen considerably, holding around US$3,900 ($5,618) per tonne, close to the high of US$4,037 recorded on 9 September.
Recent zinc prices reflect a tightening physical market. While LME prices hit market highs, stocks were sitting at just 115,675 tonnes.
As the fourth most used metal in the world — following iron, aluminium, and copper — zinc has an annual market value of US$40 billion. It also plays a critical role across a number of industries, most notably as an enabler of green technologies such as solar and wind power.
This is in addition to zinc’s primary role in steel galvanisation, protecting iron and steel from rust. Galvanisation ensures durability in construction and infrastructure across buildings, bridges, and transportation networks. Added to this is zinc’s application across energy storage and in the production of gallium and germanium, key inputs for advanced semiconductors and defence technologies.
While zinc remains in high demand, most major miners recorded a sharp fall in zinc concentrate production at the start of H2 2026, as previously reported.
The Shanghai Metals Market (SMM) found that the 17 sampled companies produced 2.458 million tonnes (Mt) of zinc (Zn) in H1 2026, representing an 8.9% year-on-year (YoY) decrease.
Teck Resources’ (NYSE:TECK) Red Dog Operation in Alaska, US, reported H1 2026 zinc concentrate production at 218,200 tonnes, down 14% YoY. The company has production guidance for 2026 of 375,000–415,000 tonnes of Zn.
Glencore (LSE:GLEN) reported its self-produced zinc production in H1 2026 at 365,600 tonnes of Zn, down 21% YoY. Boliden’s (STO:BOL) Tara mine recorded H1 2026 output of 35,100 tonnes, down 16% YoY. Newmont’s (NYSE:NEM) H1 2026 zinc concentrate production was at 102,000 tonnes, down 19% YoY.
While global zinc concentrate production was down significantly in the first half of 2026, SMM reports that new capacity in China continues to ramp up production.
Meanwhile, the global refined zinc metal market was actually in surplus by over 120,000 tonnes in H1 2026, with refined zinc output rising by 1.3% globally, driven by a 5.9% growth in China.
Despite this surplus in refined zinc output, concentrate supply remains tight, particularly outside China, as major Western producers record double-digit declines.
This mismatch underscores the fragility of the global supply chain. It comes as demand from infrastructure and renewable energy projects accelerates. With Europe and North America pushing green build-outs, the market faces a structural squeeze led by constrained mine supply in relation to rising consumption in construction and green energy.
The supply issue is regional, making a diversified global supply chain for zinc increasingly necessary. The proliferation of export controls and the concentration of mineral processing in certain regions highlight growing supply chain risks.
The deglobalisation of metals supply chains is a relatively recent phenomenon, with governments and industry placing greater emphasis on supply security and the geopolitical risks of concentrating supply and processing in a limited number of countries.
The International Energy Agency’s (IEA) latest analysis describes supply chain diversification as a critical element of mineral security.
With this in mind, zinc’s long-term story is about much more than just price forecasts. The bigger question is what price is needed to incentivise sufficient new production in reliable jurisdictions.
That additional supply is needed to spur industry growth, with well-located, competitive zinc projects able to deliver into established regional markets.
From steel to solar: Zinc’s green edge
Zinc’s role in galvanising steel protects it from corrosion and extends the lifespan of construction materials. This application spans the automotive, infrastructure, industrial, and construction industries.
The International Zinc Association (IZA) notes that zinc plays a critical role in green technologies. Zinc thermal spray protects offshore wind energy towers, while ground-based solar installations rely on galvanised steel support structures to ensure they meet their planned lifetimes.
A 10 megawatt (MW) offshore wind turbine requires 4 tonnes of zinc, while a 100MW solar panel park requires 240 tonnes of zinc supply.
In 2020, the IZA launched the Zinc Battery Initiative to promote the story of rechargeable zinc batteries and encourage wider adoption. The initiative notes how zinc-based batteries are becoming the technology of choice for a number of industries, including in data centres, military and aerospace applications, and long-duration energy storage.
For miners, zinc’s rally highlights the metal’s role as a workhorse of the industrial economy, while juniors are seizing the moment to position themselves as key suppliers in a tightening market.
Altoro’s jurisdictional edge
For Altoro Metals (ASX:ARO) Executive Director Tom Kent, zinc’s growing relevance creates a strategic opportunity. Kent notes that jurisdiction is key for Altoro, with this advantage influencing how investors may view different mining projects. In other words, a tonne of zinc is not necessarily equivalent to another tonne of zinc depending on where it comes from.
“A high-quality asset like our Novales Project — located in an established mining jurisdiction [in Spain] with existing infrastructure, nearby processing capacity, and a supportive regulatory environment — provides something a large but remote resource cannot: a credible pathway to diversified regional supply,” Kent says.
“Location, jurisdiction, proximity to infrastructure, and the ability to deliver concentrate into a regional supply chain are now critical attributes.”
Altoro is positioning itself to ride zinc’s bull run while advancing the Novales-Udías mine restart project and the Guajaraz brownfield exploration project, both in Spain. The company is currently focused on exploration and development programs following a $5 million placement.
Kent notes that for brownfield projects, demonstrating scale, continuity, and a clear path to development is integral. In addition to technical work, Kent explains that another set of milestones is equally important: the regional supply chain proposition.
“Ultimately, the most compelling projects combine great geology with realistic development circumstances: a high-quality resource, established infrastructure allowing rapid deployment, and a clear route to market,” Kent says.
“Projects like Altoro Metals’ Novales Project in Cantabria are proving out this exact model — confirming exceptional grades through systematic sampling of historic workings, leveraging existing underground access, and rapidly moving to declare a district-scale deposit.”
Taltson revives O’Connor Lake
Taltson Critical Minerals (CSE:SLZ) is currently focused on bringing new life to the historical O’Connor Lake zinc-lead-silver mine located in the Northwest Territories, Canada.
Since commencing work at O’Connor Lake, Taltson’s initial exploration has confirmed a large hydrothermal system extending well beyond the original mine area, as previously reported.
The company’s current focus remains on a 40km² mineralised corridor, though the team believes the system could ultimately span over 100km². By concentrating exploration on the smaller footprint, the company can establish clear parameters around the project.
Taltson is currently fundraising to advance its airborne geophysics program, which will be the first step towards obtaining the structural detail needed to delineate the most prospective zones on the site. This will be followed by drill target generation.
Tinka’s Ayawilca polymetallic play
Tinka Resources (TSX-V:TK) is focused on the Ayawilca Project in Peru, with plans to advance the project towards development and eventual production.
Ayawilca is a polymetallic opportunity, containing resources of silver, zinc, and tin across three key zones, as previously reported. These include the Zinc zone, Tin zone, and Colquipucro zone, which is a shallow silver-rich deposit.
The Zinc zone comprises the largest resource at the asset, with 28Mt at 7% Zn in the indicated category, 3.6 billion pounds of contained Zn, and 15 million ounces of contained silver.
The project’s preliminary economic assessment (PEA) has outlined a 20-year mine life, with dominant zinc revenue and a small tin resource as an additional contributor. The PEA, completed by Tinka in 2024, did not include the Colquipucro silver satellite deposit.
As zinc demand accelerates across infrastructure and the energy transition, the challenge is no longer simply recognising its strategic importance, but securing reliable supply. With concentrate shortages outside China and a mismatch in refined output, the market is entering a structural squeeze.
For miners and explorers, the opportunities lie in delivering competitive projects in trusted jurisdictions. This positions zinc not just as a commodity, but as infrastructure’s quiet hero in the global growth story.
Write to Amy Rotman at Mining.com.au
Main image: Mining.com.au
