LONDON (Reuters) - Vedanta Resources is extending the life of its Skorpion mine in Namibia by two years to financial year 2019, which could mean higher-than-expected supplies of zinc.
Skorpion produced about 102,000 tonnes of refined zinc metal in the last financial year, Vedanta said last month.
"At Skorpion, plans are in place to extend mine...FY2017 to FY2019," the miner said in its annual results report.
"This is being achieved by deepening of current open pit to access additional resources. Mine production will end in FY2019 and oxide ore processing will continue until FY2020 from stockpile."
Higher zinc supplies are likely to dampen the enthusiasm of zinc bulls expecting higher prices on the basis of mine closures this year.
A recent Reuters survey showed analysts expect the zinc market to see a 145,300 tonne deficit this year and a 200,000 tonne deficit in 2016.
(Reporting by Pratima Desai; editing by Susan Thomas)
