Zijin Mining has suspended ore processing at its Bisha zinc-copper mine in Eritrea because of a fuel shortage, Bloomberg reported. Some buyers were told the stoppage could last up to four weeks, at a time when zinc supply is already tight.
At a glance
- Bisha produced about 83,000 tonnes of zinc and 23,000 tonnes of copper last year.
- Zijin says fuel supplies have since stabilised but has not said when processing will restart.
- LME zinc prices have risen more than 20% this year on shortages of mined ore.
Background
Bisha is a zinc and copper mine in Eritrea. China's Zijin Mining Group is the majority owner and operator, and an Eritrean government mining entity holds 45%. The mine sells zinc and copper concentrates, a processed ore product, to smelters that turn them into metal.
What happened
Zijin Mining has suspended ore processing at Bisha because of a fuel shortage, which could delay concentrate shipments, Bloomberg reported via MiningMX. Some buyers of Bisha's zinc and copper concentrates were told last week the stoppage could last up to four weeks, according to people familiar with the matter.
Zijin said the plant was shut for routine maintenance that was brought forward from around the end of the year because of a "temporary, regional fuel shortage". It said fuel supplies had since stabilised but did not say when processing would resume.
Why it matters for zinc
Bisha is a meaningful supplier. It produced about 83,000 tonnes of zinc and 23,000 tonnes of copper last year. A pause of several weeks removes concentrate from a market that is already short.
Zinc prices on the London Metal Exchange (LME) have risen more than 20% this year as shortages of mined ore limit how much refined zinc smelters can produce, particularly in China. Any further loss of concentrate adds to that squeeze.
The regional backdrop
The disruption comes amid renewed tension between Eritrea and neighbouring Ethiopia, which have severed diplomatic ties in recent weeks and accused each other of hostilities. Eritrea's information minister, Yemane Gebremeskel, said the plant had been closed for maintenance and operations were expected to restart shortly, citing the mine's management.
Our read
Outlook: bullish. A multi-week halt at a mine producing about 83,000 tonnes of zinc a year tightens an already short concentrate market.
What to watch
- When Zijin restarts processing at Bisha.
- Whether fuel shortages in the region worsen as Eritrea-Ethiopia tensions rise.
- LME zinc prices, which are up more than 20% this year.
For information only, not investment advice.
Zinc price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2026-10-16: Bloomberg reports Zijin has suspended processing at Bisha over a fuel shortage.
Supply Drivers
The Bisha halt removes zinc concentrate from a market already short of mined ore.
Geopolitical Risks
Rising Eritrea-Ethiopia tension adds risk to operations and fuel supply in the region.
What could lift prices
- LME zinc is up more than 20% this year on concentrate shortages.
- Delayed Bisha shipments could tighten supply for smelters.
What could weigh on prices
- Zijin says fuel supplies have stabilised, so the stoppage may be short.
- Eritrea's government expects operations to restart shortly.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Eritrea | Medium | Bisha is a major mine, 45% owned by an Eritrean state mining entity. |
| China | Medium | Zijin operates Bisha, and Chinese smelters are short of zinc concentrate. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Base Metals Mining | Negative | Fuel shortages are disrupting production at an African zinc-copper mine. |
Who gains, who loses
- Other zinc miners: Tighter concentrate supply supports the prices they receive.
- Zinc smelters: Delayed Bisha shipments add to their difficulty getting concentrate.
Other ways this could play out
- If processing restarts within days, the impact on zinc supply would be small.
- If the stoppage runs the full four weeks, smelters could face more shortfalls.
Price risks
- A quick restart would remove the supply concern.
- A recovery in mined zinc supply elsewhere would ease the shortage.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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