Swiss multinational commodity trading and mining company Glencore has suspended operations at the McArthur River zinc and lead mine in Australia due to heavy rainfall.

The suspension could lead to a further tightening of the global zinc concentrate supply, which is crucial for the production of refined zinc.

Located around 970km south-east of Darwin in Australia's Northern Territory, the McArthur River mine includes an open-cut mine and processing facilities.

The site experienced rainfall this week that surpassed the previous record set in 1974.

Zinc and lead are mined and processed at the McArthur River Mine before being transported to the Bing Bong Loading Facility on the Gulf of Carpentaria. From there, the concentrates are shipped internationally.

The company has highlighted the mine's significant contribution to the world's supply of zinc, which is essential for galvanising steel.

According to the latest production report, the mine produced 262,200 tonnes (t) of zinc in concentrates and 50,400t of lead in concentrates last year.

Glencore in a statement said: “MRM has temporarily ceased operations as we monitor flooding in the region and assess impacts onsite at our operations.”

Meanwhile, in January this year, True North Copper signed two agreements with Glencore International for its Cloncurry Copper Project in Queensland, Australia.

Under the binding offtake deal, Glencore will buy 100% of the copper concentrate from the project. The toll-milling agreement enables the processing of up to one million tonnes of ore per year throughout the project’s life of mine.