Bushfires Impact Australian Zinc Mines: MMG Ltd. and Zhongjin Lingnan Forced to Halt Operations

2 min read | January 14, 2025 12:44 PM AEDT | By Team Kalkine Media

Highlights 

  • Bushfires impact zinc production in Queensland and New South Wales. 
  • Temporary suspension of operations at MMG Ltd.’s Dugald River mine. 
  • Fire at Perilya zinc mine in Broken Hill under control, operations expected to return soon. 

Recent fire incidents have affected the operations of two major zinc mines in Australia, resulting in temporary halts in production. This comes as bushfire-related disruptions continue to affect mining activities across the country. The affected mines include MMG Ltd.'s (ASX:MMG) Dugald River zinc mine in Queensland and the Perilya zinc and lead mine, owned by Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. (Zhongjin Lingnan), in Broken Hill, New South Wales. 

The Dugald River mine, owned by the ASX-listed MMG Ltd., was forced to suspend operations after a bushfire came dangerously close to the site. Fortunately, a company spokesperson reported that the fire was under control and expressed optimism that production could resume within the next 48 hours. Despite the temporary pause, the company does not anticipate any significant disruptions to its full-year production target, as the fire was quickly contained and did not cause extensive damage to the infrastructure. 

In another part of Australia, the Perilya zinc and lead mine in Broken Hill, New South Wales, also experienced a fire at one of its underground operations. The mine is owned by Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. (Zhongjin Lingnan). Fortunately, emergency services were promptly deployed to address the blaze, and the situation was brought under control. The company also assured that a full return to operations is expected soon, with minimal long-term impacts anticipated for the mine’s productivity. 

Both incidents highlight the vulnerability of mining operations to unexpected environmental factors such as wildfires, which can disrupt supply chains and production timelines. However, given the relatively quick response from the companies and emergency services, the longer-term impacts on production are expected to be manageable. 

The Dugald River and Perilya mines are significant contributors to Australia's zinc production industry, and while temporary suspensions are an inconvenience, analysts remain hopeful that production will return to normal shortly. The quick control of the fires reflects strong safety and crisis management measures implemented by the mining companies, ensuring the protection of both workers and infrastructure. 


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