UPDATE 2-Power cuts force Hunan metals smelter outages Mon Jan 28, 2008 5:13am EST
BEIJING/HONG KONG, Jan 28 (Reuters) - Power outages designed to safeguard residential supplies have forced outages at mines and plants controlled by the parent of Hunan Nonferrous Metals (2626.HK: Quote, Profile, Research), executives in Hunan Province said on Monday.
China's largest antimony producer, Hsikwangshan Twinkling Star Co, has shut operations for over a week, while lead and zinc producer Shuikoushan Nonferrous Metals has halted mining and smelting for the past two days. Power cuts have also hit the Zhuzhou smelter, China's largest zinc smelter.
Snow and ice storms across southern and central China have brought the coldest weather in 50 years to Hunan, where many homes don't have central heating. The weather has disrupted coal transport and downed power lines.
"All the power here is out. All the mines are down," the Hsikwangshan official said by phone from Hunan Province.
He said it was too early to say what impact the outage would have an expected 2008 production of 30,000 tonnes of antimony, a flame retardant.
Electricity supply in Hunan is only about 80 percent of normal demand, and local governments are diverting power to homes ahead of the Chinese New Year, said Wang Jianjun, director of the import-export department of the Zhuzhou smelter, China's largest zinc smelter.
"If it gets any colder we can't live here any more." Continued...
BIG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
