Infographic: 11 Things Every Metal Investor Needs to Know About Zinc
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11 Things Every Metal Investor Needs to Know About Zinc

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Certain commodities tend to fly under the radar for periods of time.

For example, it was only in the last couple of years that markets have been able to digest the potential impact of the electric vehicle boom, and what it may mean for raw materials. The lithium, graphite, and cobalt prices reacted accordingly, and suddenly these essential ingredients for lithium-ion batteries were hot commodities.

Another one of those metals that comes and goes is zinc – and after shooting up in price over 35% this year, it definitely has the attention of many investors and speculators again.

Re-Thinking Zinc

Today’s infographic comes to us from Pistol Bay Mining, a company that is too focusing on zinc, and it highlights 11 things that investors need to know about a metal that is gaining substantial momentum.

11 Things Every Metal Investor Needs to Know About Zinc

Here’s why the metal is back in fashion:

1. Zinc is a $34 billion per year market.
It’s bigger than the silver ($18 billion), platinum ($8 billion), and molybdenum ($5 billion) markets combined. In fact, it is the fourth-most used metal worldwide.

2. Zinc smelting and production technology came way later than it did for other metals.
The ancients were able to smelt copper, lead, and iron, but it wasn’t until much later that people were able to work with zinc in any isolated state.

3. Even despite this, it was a crucial metal for ancient peoples.
They would smelt zinc-rich copper ores to make brass, which was used for many different purposes including weaponry, ornaments, coins, and armor.

4. Zinc is also crucial to produce many alloys today.
For example, brass is used for musical instruments and hardware applications that must resist corrosion. Solder and nickel-silver are other important alloys.

5. The world’s first-ever battery used zinc as an anode.
The voltaic pile, made in 1799 by Alessandro Volta, used zinc and copper for electrodes with brine-soaked paper as an electrolyte.

6. The metal remains crucial for batteries today.
Zinc-air, silver-zinc, zinc-bromine, and alkaline batteries all use zinc, and they enable everything from hearing aids to military applications to be possible.

7. Galvanizing is still the most important use.
About 50% of the metal is used in galvanizing, which is essentially a way to coat steel or iron so that it doesn’t rust.

8. China is both a major producer and end-user.
China mined 37% of the world’s 13.4 million tonnes of zinc production in 2015. It consumed 47% of the world’s supply that same year.

9. Major mines have been shutting down.
In 2016, China ordered the shutdown of 26 lead and zinc mines in parts of the Hunan province for environmental reasons. Meanwhile, Ireland’s Lisheen Mine and Australia’s Century Mine both shut down last year after being depleted of resources. That takes 630,000 tonnes of annual production off the table.

10. Stockpiles are dwindling.
Warehouse levels are less than half of where they were in 2013.

11. Zinc has been one of the best performing metals in 2016 in terms of price.
It started the year around $0.70/lb, but now it trades for $1.04/lb.

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Energy

The Top 10 Biggest Companies in Brazil

What drives some of the world’s emerging economies? From natural resources to giant banks, here are the top 10 biggest companies in Brazil.

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The Top 10 Biggest Companies in Brazil Oct 10 Share

The Top 10 Biggest Companies in Brazil

In 2009, the at-the-time emerging economies of Brazil, Russia, India, and China held their first formal summits as members of BRIC (with South Africa joining in 2010).

Together, BRICS represents 26.7% of the world’s land surface and 41.5% of its population. By GDP ranking, they’re also some of the most powerful economies in the world.

But what drives their economies? We’re highlighting the top 10 biggest companies in each country, starting with Brazil.

What Are the Biggest Public Companies in Brazil?

Brazil isn’t just one of the largest and most diverse countries in the world, it is also an economic powerhouse.

With over 213 million people, Brazil is the sixth most populous country on Earth and the largest in Latin America. It’s also the wealthiest on the continent, with the world’s 12th-largest economy.

Once a colony focused on sugar and gold, Brazil rapidly industrialized in the 20th century. Today, it is a top 10 exporter of industrial steel, with the country’s economic strength coming chiefly from natural resources and financials.

Here are Brazil’s biggest public companies by market capitalization in October 2021:

Top 10 Companies (October 2021)CategoryMarket Cap (USD)
ValeMetals and Mining$73.03B
Petróleo BrasileiroOil and Gas$69.84B
AmbevDrinks$43.87B
Itaú UnibancoFinancial$41.65B
Banco BradescoFinancial$34.16B
WEGIndustrial Engineering$29.43B
BTG PactualFinancial$25.01B
Banco Santander BrasilFinancial$24.70B
Rede D’Or Sao LuizHospital$23.79B
XP Inc.Financial$22.45B

At the top of the ranking is Vale, a metals and mining giant that is the world’s largest producer of iron ore and nickel. Also the operator of infrastructure including hydroelectricity plants, railroads, and ports, It consistently ranks as the most valuable company in Latin America.

Vale and second-ranking company Petróleo Brasileiro, Brazil’s largest oil producer, were former state-owned corporations that became privatized in the 1990s.

Finance in Brazil’s Top 10 Biggest Companies

Other than former monopolies, the top 10 biggest companies in Brazil highlight the power of the banking sector.

Five of the 10 companies with a market cap above $20 billion are in the financial industry.

They include Itaú Unibanco, the largest bank in the Southern Hemisphere, and Banco Santander Brasil, the Brazilian subsidiary of Spanish finance corp.

Another well-known subsidiary is brewing company Ambev, which produces the majority of the country’s liquors and also bottles and distributes PepsiCo products in much of Latin America. Ambev is an important piece of Belgian drink juggernaut Anheuser-Busch InBev, which is one of the world’s largest 100 companies.

Noticeably missing from the top 10 list are companies in the agriculture sector, as Brazil is the world’s largest exporter of coffee, soybeans, beef, and ethanol. Many multinational corporations have Brazilian subsidiaries or partners for supply chain access, which has recently put a spotlight on Amazon deforestation.

What other companies or industries do you associate with Brazil?

Correction: Two companies listed had errors in their market cap calculations and have been updated. All data is as of October 11, 2021.

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Mining

All the Metals We Mined in One Visualization

From iron ore to rare earths, over 3 billion tonnes of metals are mined each year. This chart shows them all on a relative scale.

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All the Metals We Mined in One Visualization

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

Metals are all around us, from our phones and cars to our homes and office buildings.

While we often overlook the presence of these raw materials, they are an essential part of the modern economy. But obtaining these materials can be a complex process that involves mining, refining, and then converting them into usable forms.

So, how much metal gets mined in a year?

Metals vs Ores

Before digging into the numbers, it’s important that we distinguish between ores and metals.

Ores are naturally occurring rocks that contain metals and metal compounds. Metals are the valuable parts of ores that can be extracted by separating and removing the waste rock. As a result, ore production is typically much higher than the actual metal content of the ore. For example, miners produced 347 million tonnes of bauxite ore in 2019, but the actual aluminum metal content extracted from that was only 62.9 million tonnes.

Here are all the metals and metal ores mined in 2019, according to the British Geological Survey:

Metal/OreQuantity Mined (tonnes)% of Total
Iron Ore3,040,000,00093.57%
Industrial Metals207,478,4866.39%
Technology and Precious Metals1,335,8480.04%
Total3,248,814,334100%

Miners produced roughly three billion tonnes of iron ore in 2019, representing close to 94% of all mined metals. The primary use of all this iron is to make steel. In fact, 98% of iron ore goes into steelmaking, with the rest fulfilling various other applications.

Industrial and technology metals made up the other 6% of all mined metals in 2019. How do they break down?

Industrial Metals

From construction and agriculture to manufacturing and transportation, virtually every industry harnesses the properties of metals in different ways.

Here are the industrial metals we mined in 2019.

MetalQuantity Mined (tonnes)% of Total
Aluminum62,900,00030%
Manganese Ore56,600,00027%
Chromium Ores and Concentrates38,600,00019%
Copper20,700,00010%
Zinc12,300,0006%
Titanium (Titanium Dioxide Content)6,300,0003%
Lead4,700,0002%
Nickel2,702,0001%
Zirconium Minerals (Zircon)1,337,0001%
Magnesium1,059,7361%
Strontium220,0000.11%
Uranium53,4000.03%
Bismuth3,7000.002%
Mercury2,4000.001%
Beryllium2500.0001%
Total207,478,486100%

Percentages may not add up to 100 due to rounding.

It’s no surprise that aluminum is the most-produced industrial metal. The lightweight metal is one of the most commonly used materials in the world, with uses ranging from making foils and beer kegs to buildings and aircraft parts.

Manganese and chromium rank second and third respectively in terms of metal mined, and are important ingredients in steelmaking. Manganese helps convert iron ore into steel, and chromium hardens and toughens steel. Furthermore, manganese is a critical ingredient of lithium-manganese-cobalt-oxide (NMC) batteries for electric vehicles.

Although copper production is around one-third that of aluminum, copper has a key role in making modern life possible. The red metal is found in virtually every wire, motor, and electrical appliance in our homes and offices. It’s also critical for various renewable energy technologies and electric vehicles.

Technology and Precious Metals

Technology is only as good as the materials that make it.

Technology metals can be classified as relatively rare metals commonly used in technology and devices. While miners produce some tech and precious metals in large quantities, others are relatively scarce.

MetalQuantity Mined in 2019 (tonnes)% of Total
Tin305,00023%
Molybdenum275,00021%
Rare Earth Elements220,00016%
Cobalt123,0009%
Lithium97,5007%
Tungsten91,5007%
Vanadium81,0006%
Niobium57,0004%
Cadmium27,5002%
Tantalum27,0002%
Silver26,2612%
Gold3,3500.3%
Indium8510.06%
Platinum Group Metals4570.03%
Gallium3800.03%
Rhenium490.004%
Total1,335,848100.00%

Percentages may not add up to 100 due to rounding.

Tin was the most-mined tech metal in 2019, and according to the International Tin Association, nearly half of it went into soldering.

It’s also interesting to see the prevalence of battery and energy metals. Lithium, cobalt, vanadium, and molybdenum are all critical for various energy technologies, including lithium-ion batteries, wind farms, and energy storage technologies. Additionally, miners also extracted 220,000 tonnes of rare earth elements, of which 60% came from China.

Given their rarity, it’s not surprising that gold, silver, and platinum group metals (PGMs) were the least-mined materials in this category. Collectively, these metals represent just 2.3% of the tech and precious metals mined in 2019.

A Material World

Although humans mine and use massive quantities of metals every year, it’s important to put these figures into perspective.

According to Circle Economy, the world consumes 100.6 billion tonnes of materials annually. Of this total, 3.2 billion tonnes of metals produced in 2019 would account for just 3% of our overall material consumption. In fact, the world’s annual production of cement alone is around 4.1 billion tonnes, dwarfing total metal production.

The world’s appetite for materials is growing with its population. As resource-intensive megatrends such as urbanization and electrification pick up the pace, our material pie will only get larger.

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