Asturiana de Zinc Records Second-Highest Production in 2024 Amid Energy Challenges
Asturiana de Zinc (AZSA) reported a molten zinc cathode production of 538,625 tons in 2024 at its San Juan de Nieva plant in Avilés. This figure marks the second-highest annual output since the plant's inception in the 1960s but falls short of the 2023 record of 544,192 tons by 5,567 tons. The decline was primarily due to rising energy costs and the activation of the interruptibility mechanism.
Energy expenses, accounting for 40% of production costs, significantly impacted operations. Zinc prices are fixed on the London Metal Exchange (LME), preventing producers from adjusting product prices to offset energy cost increases. As a result, AZSA strategically scaled back production to avoid selling at a loss when energy prices spiked.
In 2024, the interruptibility mechanism was triggered three times at the San Juan de Nieva facility. This system, managed by Red Eléctrica, compensates companies for agreeing to temporary power cuts to stabilize the national grid. Each activation led to temporary production halts, contributing to the overall decline in output.
AZSA management has communicated the production results to the workforce, ensuring that production-based compensation aligns with the company’s collective bargaining agreement.
