Friday, February 26, 2010

Teck Resources (NYSE:TCK) Red Dog Mine

Teck Resources Red Dog Mine

Teck Resources (NYSE:TCK) is on the verge of having to shut down its Red Dog mine, the largest zinc mine in the world based on dubious charges it is discharging toxins into a local stream used for drinking water.

The Red Dog mine provides close to 80 percent of the zinc that is mined in the United States.

If this is what happens, even after being issued a permit by the U.S. Environmental Protection Agency (EPA), it could cause zinc prices to rise more than they did in 2009, which had increased by 100 percent. Supply in 2009 was also down by about 500,000 tons.

What this probably will do will give the smaller zinc producers a chance to get into the game, assuming the whether the appeal is allowed to go forward or not. If it is, it could take about two years to go through the process for Tech Resources.

There is no doubt zinc mining for the smaller companies will get a big push if the Red Dog mine is shut down.

Teck Resources Red Dog Mine

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