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LONDON, May 26 (Reuters) Growth in India's zinc consumption will underpin prices, and the full potential has yet to be seen, David Morris, Head of Zinc and Base Metals at Anglo American in South Africa, said on Friday.

''I think the market underestimates future zinc growth in India, just like we did with China,'' Morris told Reuters at Metal Bulletin's zinc seminar in London.

High prices were likely to continue, supported by tight supply and strong demand, and even if prices dip a few percent, they will stay on the high side, Morris said.

He added that recent fund activity has been very positive for the industry.

''On Thursday, we heard the figure $5,500 a tonne for zinc -- and why not?'' he said.

By 1039 GMT zinc was indicated at $3,570/3,580 a tonne against $3,530 on Thursday.

With the higher prices, he said it was to be expected that miners are demanding a larger share of the profits.

He added said developments in Latin America where Bolivia, among others, have voted in populist leaders, some of whom want to nationalise natural resources, has changed exploration activity and the way banks look at financing new mining it.

''The banks have changed,'' he said. ''Five years ago we wouldn't have seen sustainable development as one requirement to receive financing for new projects.'' He said the industry faced problems recruiting experienced personnel and also needed to renew equipment.

''Everybody is aware of the difficulties of rundown equipment in the industry, especially there is a problem with the lack of tyres for heavy machinery.'' He said this problem was more acute in copper mines, which are larger than zinc mines.

REUTERS CS DS1546