Swiss-based miner Xstrata Plc has cut ore production by 20 percent at its McArthur River lead-zinc mine in northern Australia, it said on Tuesday.
"We have reduced mine production from 2.5 million tonnes per year to 2.0 million tonnes," an Xstrata spokeswoman said.
On an annual basis, the move would result in the loss of 68,000 tonnes of concentrate, containing 31,700 tonnes of zinc metal and 7,200 tonnes of lead, the spokeswoman added.
The length of the curtailment, which has been made in response to lower demand from plants using Imperial Smelting Furnace (ISF) technology, will depend on market conditions.
Only ISF plants can process the mine"s bulk lead-zinc concentrate.
Analysts said concentrates from the mine are sent to plants in China and Eastern Europe.
While the mine had only recently been producing at the 2.5 million tonnes-rate after an earlier expansion, some market watchers might have anticipated higher production next year.
Prior to this announcement, CRU Group analyst Graham Deller said he had expected McArthur River to produce 167,000 tonnes of contained zinc next year.
The actual loss from this year"s estimated output of 135,000-140,000 tonnes would be minimal though, he added.
"But it"s taking concentrates out of the future, taking some of the growth away, which is needed," Deller said.
The zinc industry has been quick to respond to the slump in prices and a host of producers have announced cutbacks and closures.
At 1405 GMT the London Metal Exchange (LME) three-months zinc price MZN3 was indicated at $1,100/10 a tonne.
In 2007, McArthur River produced about 138,000 tonnes of zinc in concentrate and 33,000 tonnes of contained lead.
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