Zinc sales to be reviewed by U.S. Congress

The U.S. Congress has called for a review of sales of zinc from the National Defense Stockpile, reports the American Zinc Association (AZA).

Representative Herbert Bateman, chairman of the House subcommittee on military readiness, will order the General Accounting Office to review the sales. This study will then be included in future hearings on zinc stockpiles.

Bateman decided to review zinc sales in response to a letter sent to him by Representative Ed Bryant on behalf of his constituent, Savage Zinc of Tennessee, a member of the American Zinc Association.

Savage and the AZA have long argued that the inter-agency Market Impact Committee (MIC), charged by law with determining whether zinc sales cause “undue disruption of the usual markets,” has been misinterpreting the language of its mandate.

“The industry believes the statute means what it plainly says; the MIC has to look at the normal, actual markets for the grades of zinc in the stockpile in order to determine whether sales of those grades are disruptive,” says George Vary, executive director of AZA. “The MIC, on the other hand, has been looking at either the overall market for all grades of zinc — including grades not in the stockpile — or potential markets for the grades of zinc in the stockpile.”

The AZA commends Bateman’s call for a report. Vary says he believes the report will uphold “both the letter and intent of the statute, and require MIC to view the impact of disposals of the grades of zinc in the stockpile against the normal market for those grades.”