In August ( we mentioned two world-class sized zinc projects scheduled to start production in the next few years, one in Iran and one in Bolivia. These were the only two world-class sized (150,000+ tonnes per year) zinc projects in the world that had completed a feasibility study and were planning to start production in the next three years. Since then, the obvious political risks of those countries have put those projects into doubt:
Mehdiabad in Iran has had difficulties financing the $1.6 billion project because of Iranian political issues, so in order to try to secure financing, management has decided to conduct a scoping study to consider a number of lower cost options to stage the project and start with much lower production. They’ve also had issues with the Iranian government The U.S. recently ordering banks to shut down operations in Iran won't make financing any easier. It looks like if Mehdiabad can get financing and make it into production in the next few years, it will be on a much smaller scale than originally planned.
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