By Daniella D’Alimonte – Exclusive to Zinc Investing News

Trading at just over US$0.80 per pound, some are now wondering if zinc has already fallen as far as it could.

After Zazu Metals Corporation (TSX: ZAZ) had reached its year’s low of US$0.19 per share on August 19, it had recently gone up to US$0.24 per share, and continues to rise.

Hudbay Minerals (TSX: HBM) has been on the incline since the beginning of August. From US$9.99 per share August 1, it has now climbed to US$11.40. The company, however, announced on August 21 that it plans to close its Balmat, N.Y., zinc mine and concentrator because of the current zinc prices, the rise in inflation and operating costs, and the geology of the mine.

Hudbay’s plans

Hudbay plans to continue testing geophysical anomalies at the mine in line with its 2008 exploration plans. Production of zinc from the company’s other projects, as well as from the Balmat mine’s eight-month contribution, will be on the low end of Hudbay’s original estimates of 120,000 to 150,000 tonnes. It does not expect that closure will bring any huge costs. About 200 employees will be affected by the closure. Hudbay plans to give the out-of-work employees transition support and assistance during this time, it said in a press release.

Blue Note to cut costs

Blue Note Mining (TSX: BN) has reported that it is in the midst of reducing costs at its New Brunswick-based Caribou mines. “Non-labor related cost reductions are being realized through optimizing production activities, streamlining processes, improving controls and undertaking special initiatives in areas such as energy conservation,” said the company in its press release.

John Martin, Blue Note’s Chief Operating Officer, has also said that the company plans to reduce the number of employees from 370 to 300 by the second half of the year. Blue Note has been on a slow decline for about a year and is down to US$0.05 per share.

In other news…

China’s Hunan Nonferrous Metals Corp. announced a 75 per cent profit drop for the first half of this year due to zinc prices, as well as damaging snow storms at the beginning of the year. The company’s net income fell US$11 million or US$0.00 per share, compared to last year’s US$44 million, or US$0.01 per share.

In contrast to negative market outlooks, many companies are continuing with, or beginning projects despite cost increases and resulting hardships. This suggests long-term positivity by some in the industry.

Confederation Minerals Ltd. (TSX: CFM) has begun drilling at its Confederation Lake property in the Red Lake District of Northwestern Ontario. Situated between previous areas of prosperous mining, zinc, copper and silver are historic to the region.

Over the 2,978 hectares of land, Confederation has 26 staked claims, comprising 184 staked units.

Esperanza Silver Corporation (TSX: EPZ) has recently given updates for its ongoing San Luis drill project in Peru. Percentages of high-grade silver, copper, zinc and lead are mentioned in the highlights.

Australian-based Jabiru Metals announced at a recent industry conference that it has begun a drilling program on the Stockman project near Omeo. With nearly a US$9-13 million budget set aside, the company aims to begin mining a million tonnes of zinc and copper a year within the next three years or so.

However, like other Australian companies such as Perilya Ltd. and CBH Resources Ltd., Jabiru is currently feeling the pressures of the floundering market. It closed August 25 at US$0.28 per share compared to January’s peak of US$1.13.

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