chinese zinc deposits part ii

So here is a little information on the Chinese company that owns the majority of China's largest zinc deposit within the largest province in the South of China, called Yunnan. China is still planning to export refined zinc to the LME but have capped their own annual production capacity for refined lead at 4 million tonnes and for refined zinc at 5 million tonnes by 2010.

http://en.ce.cn/Industries/Auto/200609/12/t20060912_8521526.shtml

Hongda to more than double zinc output
Last Updated(Beijing Time):2006-09-12 10:46
China's Hongda Group, a majority owner of the country's largest proven zinc reserves, expects its refined zinc production to more than double this year because of production at a new plant, a senior executive said on Monday.

The parent of listed Sichuan Hongda Chemical Industry Co. was also seeking a brand registration for the new plant allowing the plant's production to be used for delivery against the zinc contract of the London Metal Exchange (LME), the world's largest base metals market.

The plant has designed capacity of 100,000 tonnes of refined zinc a year and started production last year.

"Our plant in Lanping is likely to produce 120,000 tonnes of refined zinc," Dong Jianping, the company's vice president, said, referring to the plant at the site the Lanping mine in the Chinese southwestern Yunnan province.

The firm also operated 80,000 tonnes of zinc capacity in neigbouring Sichuan province and was running at full rates.

The two production bases could push up Hongda's zinc production to 200,000 tonnes this year, from 80,000 tonnes last year. This may support the firm's profits this year as zinc prices were strong.

Zinc prices on the London Metal Exchange have gained more than 82 percent this year, supported by fund buying and expected strong demand in China, where the metal is used to galvanise steel for the construction sector.

"We have applied for a LME brand registration for the refined zinc produced by the new plant," Dong said.

Six Chinese zinc producers are allowed to use their production for the delivery of the LME zinc contract.

China produced 1.73 million tonnes of refined zinc in the first seven months, up 13.7 percent from a year earlier.