Province People’s Government Notice on Issuing Anhui Province Non-Ferrous Metals Industry Adjustment and Revitalization Plan Wan Zheng [2009] No. 96

All city, county People’s Government, provincial government departments, all directly-administered agencies

Anhui Province Non-Ferrous Metals Industry Adjustment and Revitalization Plan is hereby issued to you. Please integrate with the actual situation of this locality and local department, and earnestly implement it.

Anhui Provincial People’s Government 1 September 2009

Anhui Province Non-Ferrous Metals Industry Adjustment and Revitalization Plan The non-ferrous metal industry is one of the pillar industries in our province. It is also a basic raw materials industry with comparative advantages and development potential, and plays a very important role in economic construction, social development, tax revenues and stable employment in our province. To implement the national “Non-Ferrous Metals Industry Adjustment and Revitalization Plan,” on top of the foundation of the Anhui Province Eight Pillar Industries Plan that has been agreed to be released by the provincial government, the Anhui Province Non-Ferrous Metals Industry Adjustment and Revitalization Plan is specially compiled. The planning period is 2009 – 2011, and the long-term plan extends to 2020. 1. Anhui Province Non-ferrous Metals Industry Present Conditions and the Situation It Faces (I) Industry Present Conditions Since the “Tenth Five-Year Period,” the non-ferrous metals industry in Anhui Province has developed quickly. In the first three years of the “Eleventh Five-Year Period,” the average annual increase in industrial added value was 48%, and greatly contributed to economic and social development in the entire province. In 2008, the industrial added value of large-scale non-ferrous metals enterprises in the province was 16.5 billion RMB, a 5.2% increase over the previous year. Sales revenues were 68 billion RMB, 4.4% more than the previous year. Among them, the gold industry (including silver) achieved an industrial added value of 1 billion RMB, a 43.7% increase, achieving sales revenue of 3.1 billion RMB, a 46.7% increase. The non-ferrous metals industry in Anhui province mainly includes bronze, lead, zinc, gold, silver, molybdenum, and aluminum processed products. The output in 2008 is listed below: Mineral products. The copper content in copper concentrates was 129,000 tons, a 38.9% increase over the previous year. The lead content in lead concentrates was 3,676 tons, a 118.5% decrease. The zinc content in zinc mines was 854 tons, a 78.8% decrease. The converted molybdenum content in molybdenum concentrates was 575 tons, an 82.5% increase. Gold [output] was 4.5 tons and silver [output] was 7.8 tons, the same as the previous year. Smelted products. Cathode copper output was 538,000 tons, a 10.5% increase. Lead output was 396,000 tons, an increase of 27.0%. Zinc output was 3000 tons, an increase of 89.5%. Gold output was 9.8 tons, an increase of 37.8%, and silver output was 190.7 tons, a decrease of 4.7%. Processed products. Copper products output was 568,000 tons, an increase of 29.8%, and aluminum products output was 166,000 tons, an increase of 105.3%. Recycled products. Scrap copper output was 62,397 tons, an increase of 74%. Scrap lead output was 329,902 tons, an increase of 89%, and scrap zinc output was 1966 tons, an increase of 102%. After years of development, a group of excellent enterprises and specialty products emerged in the non- ferrous metals industry in our province, and maintain a leading position in the industry nationally. In 2008, Nonferrous Metals Group Holdings Limited produced 650,000 tons of electrolytic copper (including the 175,000 tons produced by Zhangjiagang Co.), ranking second in . Chujiang Group’s copper strip output ranks first nationally, and their output of copper alloy wires ranks second in China. Jingda Inc.’s varnished wire output ranks first in China. ’s secondary lead output ranks first in China. Huaxin Lead Industry Group Co., Ltd. is a standard-setting unit in the secondary lead and alloy ingot industries in China. Tongling Nonferrous Precious Metal Subsidiary built the world’s most advanced 4000 ton/year anode slime processing project. [We] have three “Chinese Famous Brand” products, two national-level enterprise technology centers, three provincial-level enterprise technology centers, and two provincial-level engineering research centers. [We] have a national-level new-materials achievement transfer and industrialization base, and a national-level testing center for copper, lead, and zinc. (II) Situation Facing Industry At present, the main influences on the development of the non-ferrous metals industry in our province are: (1) The unbalanced development of the non-ferrous metals industry in our province. Products lack variation (particularly copper), and other non-ferrous metals types are relatively few. (2) Few deep and intensively processed products, short industrial chains, and the added value of products await improvement. (3) Processing enterprises have dispersed layout, industrial intensification is relatively low. (4) Geological exploration work is lagging, resource protection level is low. More than 90% of the copper concentrates rely on imports, and the static level of assurance of gold resources is less than 6 years. (5) The production capacity of gold mines is small, with poor resource endowment and poor mining efficiency. The phenomenon of wasted resources is severe. The environmental costs are high, and many hidden perils exist. At present, the status of China as a large global producer and consumer of non-ferrous metals has not changed. The important role the non-ferrous metals industry still plays in the process of achieving urbanization, industrialization has not changed. The status of key support in the development of the modern new high-tech industry has not changed. The fundamentals of industrial development has not changed. Along with the construction of infrastructure such as transportation, as well as the rapid development of the automobile, electricity, equipment manufacturing, household appliances, shipbuilding, and the electronic information industry, China’s non-ferrous metals industry maintains relatively good market demand in a relatively long period. In the coming years, the demand for gold will also continue to increase, and gold prices will remain high for a relatively long period. We shall seize the opportunity of the new wave of national non-ferrous metals industry adjustment and revitalization, fully take advantage of location, transportation, technology, talents, resources, and other competitive advantages, accelerate the elimination of outdated production capacity, promote mergers and reorganization among enterprises, upgrade the level of processing technology and the processing ability of key materials, and promote the sound and rapid development of the non-ferrous metals industry in our province. 2. Guiding Ideology, Basic Principles and Targets (I) Guiding Ideology Guided by the view of scientific development, closely combine the exploration and integration of resources with excellent enterprise development, use an integrated development path to go mining, extracting, smelting, processing, and recycling. Increase investment for geological exploration, increase control of resources, realize intensive extraction of resources, concentrate the expanded resources in excellent enterprises. Insist on “go global” strategy, implement deep and intensive processing at a high starting level with a long industrial chain, increase the added value of products, expand the copper industry, actively develop the aluminum, lead, zinc, gold, silver and rare earth industries, as well as the non-ferrous metal new materials industry, guide the healthy development of the recycled copper, lead and aluminum industries, and form a featured pillar industry of Anhui province with great influence nationally. (II) Basic Principles 1. Driven by innovation. Actively adopt applicable advanced technologies, speed up technology upgrading, enhance the level of processing equipment and product quality, develop and utilize low-grade ores such as copper, gold, lead, zinc, and associated minerals, refractory ores, tailings and smelting slag, and further enhance the comprehensive utilization of resources. 2. Cluster development. From the starting point of our province’s non-ferrous metals industry current situation and resource conditions, determine the focus of industry development. Vigorously develop the featured non-ferrous metals processing industry which has obvious advantages in the region along the Yangtze River, along the Huai River and along highways, and promote and support the non-ferrous metals new materials industry development.

3. Eliminating outdated [capacity]. Implement the national industrial policies and technology policies. Depending on market demand, effectively handle well the non-ferrous metals industry layout, and accelerate the elimination of outdated production capacity.

4. Sustainable development. Exert great efforts toward energy conservation and consumption reduction and increase efforts toward environmental management. Popularize the utilization of clean production processes and technologies and develop circular economy. Increase the efforts on geological exploration, increase the effective recoverable reserves, enhance the economic assessment of existing resources, and realize the balanced development of mineral resources exploration and environmental protection.

5. Reform and opening up. Through reconstruction, restructuring, and reorganization, actively promote enterprise to merge and restructure, encourage the corporate group development of non- ferrous metals enterprises, improve industrial concentration, enhance the competitiveness of enterprises and products. Encourage and support enterprises to “go global,” utilize overseas resources, expand development space, constantly improve enterprises’ international competitiveness, and support and foster large corporate groups with international competitiveness. (III) Adjustment and Revitalization Targets 1. Stable growth in output and sales. By 2011, achieve sales revenue greater than 100 billion RMB; achieve industrial added value 26.2 billion RMB, a yearly average increase of 16%. Refined copper output 900,000 tons, lead output is 400,000 tons, zinc output 100,000 tons, the copper processing materials 950,000 tons, aluminum materials output 80,000 tons, rare earth permanent magnetic material 15,000 tons, monocrystalline silicon materials 1000 tons; gold output 25 tons (in the top 5 in China) and silver output 380 tons. By 2020, achieve industrial added value 100 billion RMB, a yearly average increase of 14%. Attempt to achieve copper output 1.3 million tons, copper processing output 1.5 million tons, lead and zinc output 600,000 tons, gold output 60 tons, and silver output 700 tons. 2. Progress made in enterprise restructuring. Support excellent enterprises such as Tongling Nonferrous Metals Group Holdings Ltd. to further integrate and develop non-ferrous mineral, smelting, and processing resources in the province, and attempt to enter rank among the top 3-5 strong comprehensive non-ferrous metals enterprise corporate groups with key support from the state. Strive to have Chinalco implement the merger and reorganization of the aluminum industry in Anhui province. Build Tongling into one of the biggest copper smelting, copper dismantling, and copper deep processing bases and a copper commodity trading center, as well as a nationally important gold industrial base.

3. Innovation ability clearly strengthened. Develop copper alloy materials with high strength, high conductivity, and high performance. Strengthen efforts in refractory ore technology research, increase the introduction and promotion of advanced processes such as oxidizing roasting, pressure oxidation, and bacterial oxidation. More than 70% of lead smelting capacity uses advanced technologies such as oxygen-rich bottom blasting. By 2011, the processing technology equipment in backbone enterprises such as Tongling Nonferrous Metals Group Holdings Ltd. [shall] be close to or equal to the international advanced level. The main economic and technical indices [shall] be close to or equal to the international advanced level, and a portion [shall] be in a leading position domestically or abroad. The industry overall level strives to surpass the national average level.

4. Obvious achievement in energy conservation and emissions reduction. By 2011, total industrial pollution emissions [shall] be 5-10% less than current levels. Increase the industrial water reuse rate to higher than 88%, and waste heat recovery rate to 100%. The sulfur recovery rate in crude copper smelting to over 95%, and the sulfur recovery rate in crude lead smelting to over 97%. Emissions of the “three wastes” (waste gas, waste water, industrial residues) in the whole industry [shall] reach 100% of the targets. Enterprise environmental protection facilities [shall] reach advanced level domestically. All industrial residues [shall] be harmlessly disposed of and all wastewater recycled in a close cycle. Enterprise energy consumption indices in processes [shall] be lower than the national standard limit, and the comprehensive energy consumption in crude lead smelting [shall] be lower than 380kg of standard coal per ton.

5. Further enhance the ability to protect resources. Strengthen resource exploration in the periphery, depths, and outskirts of large mines. Speed up successive resource exploration in potential resource areas especially in mines in crisis, strive to find a group of new resource exploration areas, form a new gold industrial base in the northeastern Anhui and a tungsten and molybdenum production base in southern Anhui. Develop and build a recycling system for non-ferrous metals and strive to build national secondary copper production bases in Tongling and Langxi and national secondary lead production bases in and Fuyang, making renewable resources an important source of non-ferrous metals industry development in our province. 3. Focus of the Adjustment and Revitalization (I) Key Products. 1. Copper Products. Speed up the deep and intensive copper processing, and develop from a high starting point high-grade copper products that are in short supply in China, and form eight series of products including copper wires, plates, strips, bars, sections, foil, pipes and powder. Relying on enterprises such as Tongling Nonferrous, Tongling Jingda, Xinke New Materials, [we shall] prioritize the development of integrated circuit lead frame copper strips, high-precision strips in discrete devices, specialty copper strips for transformers and high-grade water tanks, internally ribbed tubes for efficient cooling, condenser pipes, water pipes, pure copper and copper alloy bars, sectional materials used in the electric power industry, and wires such as copper alloy conducting wire with high strength and high conductivity, contact wire for electric locomotives, special wires and cables, as well as instruments and meters, springs and plug-in connectors. 2. Aluminum Products. Actively introduce strong enterprises to implement strategic reorganization of former Aluminum Plant and the Suixi Aluminum Plant, and strive to construct a 300,000-ton electrolytic aluminum project. Accelerate the development of secondary aluminum, aluminum materials for automobiles and the aluminum materials industry for construction and household use, and strengthen and expand the existing aluminum foil industrial chain. Relying on enterprises such as Enyuan Aluminum, Huaibei Dongci and Tongling Jingda, [we shall] prioritize the development of products such as automobile profiles, aluminum alloy plates for household appliances, aluminum materials for construction, etched and formed foil for capacitors, aluminum foil for air conditioner cooling, household foil, container foil, foil for medicine and coated aluminum foil for food. 3. Lead and zinc products. Relying on Anhui Tongguan Nonferrous Metal (Chizhou) Company and relevant enterprises in City Circular Economy Industrial Park, [we shall] prioritize the development of lead-acid battery technology, and recycle waste acid and plastics by using the activation technique. Develop high-performance battery grid materials, produce high–purity lead oxide by using the wet extraction process, and achieve the mass production of lead-acid batteries in a way that saves energy and protects the environment. By combining importation and independent innovation, [we shall] develop high capacity batteries and develop lead and zinc alloys, and high-purity materials used in machinery and the chemical industry, to realize industrial upgrade. 4. Rare earth material products. Relying on enterprises such as Wanma Rare Earth, Maanshan Dingtai, Tianyuan Technology and Longci Technology, [we shall] prioritize the development of neodymium iron boron (NdFeB) and germanium magnetic materials, high performance amorphous and microcrystalline soft magnetic materials, and develop broadband products and nanocrystalline materials. Develop and produce high performance soft magnetic ferrite and permanent magnetic ferrite for the household appliance industry, magnets for computer hard drives, DVD drives and CD burners, magnets for communications in the information industry, magnetic tiles for the automobile industry, and permanent magnets for electric bicycles and electric vehicles. 5. Tungsten, molybdenum, and vanadium products. Relying on enterprises such as Anhui Research Institute of Metallurgy Co., Ltd. and Chizhou Metallurgical Plant, [we shall] develop tungsten, molybdenum, and vanadium extraction and deep processing industry, and prioritize tungsten, molybdenum, and vanadium metal extraction and deep processed products. 6. Non-ferrous metal new material products. Relying on enterprises such as Hefei Jingkun New Energy, Anhui Jingwei, Tongling Sanjia, and Zhongke Tongdu Powder New Material, [we shall] prioritize the development of non-ferrous new materials such as monocrystalline silicon and polycrystalline silicon ingot products, super-fine powder, electronic paste, packaging materials for the new generation of integrated circuits, single-crystal copper materials and products, high grade thin-film capacitors, lead frame material for large-scale integrated circuits, high purity metals, and high-precision metal foils, and strive to achieve great progress in new material industrialization. 7. Gold and silver products. Accelerate the process of industrialization of deep and intensive processing of gold and silver, meet the needs in various fields of finance, investment, jewelry, communication, aerospace, national defense, health care and environmental protection. Relying on enterprises such as Tongling Nonferrous Metal, Tongling Jingsanyuan, [we shall] prioritize the development of products such as gold bonding wire, gold foil, gold bars, super-fine silver powder, and gold and silver crafts, to strengthen and upgrade current gold products and strive to develop tourism products featuring gold. (II) Key Industrial Bases 1. Copper mining, smelting and recycling base in Tongling. By upgrading the current copper smelting capacity and fully utilizing advanced technologies, [we shall] prioritize the construction of the copper smelting technology upgrade and reconstruction project in Tongling Nonferrous Metal Group Jinchang Smelting Plant. Do well the recovery work of precious metals such as gold, silver, platinum, palladium and indium which are byproducts of smelting, and construct a comprehensive utilization project for copper smelting residues at Tongling Nonferrous Metals. Attempt to make Tongling City the designated port for imports of “seven classes of waste metals” to our country, and push forward the construction of national copper scrap dismantling and processing base projects in Tongling. Advance a resource development strategy and enhance resources exploration in non-ferrous metal mines.

2. High quality copper production base along the Yangtze River. Based on the demands in the electric power, household appliance, automobile and electronics industries, we shall prioritize development in cities along the Yangtze River such as Tongling, , Chizhou and copper rods and cables, copper foil–printed circuit boards, copper strips for electronics and transformers, copper tubes, copper powder, copper bars, copper hardware, and copper products for domestic and crafts use, so as to forge a high quality copper products manufacturing base along the river. Our focus should be on key projects such as the copper strip project at Jinwei Copper with a yearly output of 100,000 tons, the low oxygen bright copper rod project with a yearly output of 250,000 tons at Jinwei Copper, as well as the brass bar project with a yearly output of 75,000 tons at Tongdu Copper.

3. Copper, aluminum products and rare metals production base in the economic zone of the provincial capital. In response to the Hefei High-Tech Development Zone, we shall prioritize the development of products such as condensing tubes used in heat exchangers, conductors and assembly lines, electrolytic copper foil and special cables. Accelerate the 300,000-ton electrolytic copper cooperation project at Chinalco, and the construction of aluminum deep processing projects. Support in constructing a demonstration project for high-aluminum fly ash utilization. Relying on universities and institutes such as the University of Science and Technology of China, Hefei University of Technology and Provincial Rare Metal Engineering Technology R&D Center, we shall prioritize the development of technologies for molybdenum and vanadium extraction, and deep processing of metallic materials.

4. Lead and zinc materials base in Chizhou and Fuyang. By accelerating the construction of the Chizhou non-ferrous metal industrial park, by 2011 the production capacities of special alloy, super fine metal powder and 3000 tons of molybdenum powder and products can be achieved. We shall prioritize support for the development of Anhui Tongguan Non-ferrous Metal (Chizhou) Company Jiuhua Smelting Plant in order to form a lead & zinc production capacity of 200,000 tons per year by 2011. Accelerate construction in the Fuyang Jieshou–Taihe Secondary Lead Circular Economy Industrial Park to form industrial chains for the centralized recovery of waste lead-acid batteries, secondary lead production, waste plastic recycling and reuse, lead chemical and lead material processing, lead-acid batteries and so forth, etc. and to form industrial clusters of electric vehicles and chemical dyes, forging the largest national secondary lead demonstration industrial park. By 2011, the production capacities of 400,000 tons of secondary lead and 300,000 tons of deep processed products will be reached. 5. Aluminum foil industrial base in Huaibei. Giving priorities to Huaibei Enyuan Aluminum and Huaibei Dongci, we shall expand production capacities through technological upgrades to form industrial chains for household foil, foil for medicine, coated aluminum foil for food, crude aluminum foil, etched and formed foil and electronic components.

6. Non-ferrous metals new materials industrial base. Firstly, relying on the quartz mine resources in Fengyang etc. we shall try to establish a production base for silica sand, industrial silicon, polycrystalline silicon, monocrystalline silicon, and silicon chips. In the meantime we shall support the monocrystalline silicon and sapphire deep processing project at Jinzhai Industrial Park, the monocrystalline silicon project at Hefei Jingkun New Energy Co., Ltd, and the construction of a polycrystalline silicon ingot and silicon chip manufacturing project at Anhui Jingwei Solar Energy Co., Ltd. Secondly, relying on enterprises including Tianyuan Technology and Longci Technology, we shall develop high-performance sintered NdFeB, bonded NdFeB and high performance rare earth permanent magnetic materials, and establish rare earth permanent magnetic material industrial bases in Maanshan, , Liuan, and Hefei. Thirdly we shall provide support for Tongling Non-ferrous Industrial Park to cooperate with Central South University and Hefei University of Technology to build up a NiMH battery, lithium battery and materials processing base.

7. Gold industrial bases in Tongling and northeast Anhui. Relying on abundant gold resources and key enterprises, we shall further explore and develop gold resources in the periphery and the hinterlands. Push forward resources integration and build up gold smelters and gold industrial parks. Extend the industrial chain to form industry clusters of gold salts, gold wire, gold foil, gold bars and gold handicrafts. Stress should be placed on deep prospecting and expansion projects in the Tongguanshan area in order to establish three production enterprises with multiple-ton gold production capacity. Relying on new breakthroughs in gold geological prospecting in northeast Anhui, we shall create gold production bases in and . By emphasizing the construction of the “861” project of Fengyang Jinpeng Mining Company; we can establish a production enterprise with a multi-ton gold production capacity. (III) Key Enterprises 1. Tongling Nonferrous Metals Group Holdings Limited. Actively implement the “go global” strategy, through methods such shareholding, joint stock, and mergers, by 2011, [we shall] control 10 million tons of copper resources (in which copper, lead, zinc and molybdenum resources in the province are converted to copper in the amount of 3 million tons), form an annual production capacity for refined copper of 900,000 tons (in which 600,000 tons are in the province), lead and zinc 200,000 tons per year, and copper products 200,000 tons per year. Developing rare and precious metals recycling, extraction, and deep processing, [we] strive to reach sales revenues of more than 100 billion RMB by 2015. By 2020, establish a refined copper production capacity of 1.4 million tons per year (in which 10.5 million tons are in the province), lead and zinc 500,000 tons per year, and copper products 600,000 tons per year, as well as super- fine silver powder deep processing.

2. Anhui Chujiang Investment Group Co., Ltd. By 2011, the copper deep processing capacity [shall] reach 220,000 tons. By 2020, [we shall]l establish deep processing capacities of 200,000 tons of copper strips per year, 50,000 tons of copper alloy wire per year, and 200,000 tons of copper bars per year.

3. Tongling Jingda Special Magnet Wire Co., Ltd. Prioritize the development of products such as heat-resistant varnished wire, copper-clad aluminum bi-metal composites, copper-clad steel bi- metal composites, single-crystal micron-level copper electronic information materials, special shaped magnet wire, special magnet wire, tinned copper wire, and copper capillary tubes. By 2011, the deep processing capacity of copper [shall] reach 150,000 tons. By 2020, strive to have deep processing capacity of copper reach 500,000 tons.

4. Anhui Xinke New Materials Co., Ltd. Build a new project of 10,000 tons of high-precision brass bands, 10,000 tons of high-precision copper bands, and 15,000 tons of high-precision copper alloy lead frame strips. By 2011, [we shall] establish a deep processing capacity of 180,000 tons of copper strips, bars, and wire per year. In the “12th five-year period,” prioritize the development of high-precision electronic copper strips, oxygen-free copper strips, copper-clad aluminum strips, high-performance copper, and copper alloy wire. By 2020, [we shall] establish a deep processing capacity of 300,000 tons of copper per year.

5. Wuhu Hengxin Copper Group Co., Ltd. On the basis of current annual production capacity of 75,000 tons of refined copper and 10,000 tons of copper materials, accelerate technology upgrade to a capacity of 100,000 tons of refined copper and 30,000 tons of copper materials per year by 2011. By 2020, strive to reach a capacity of 150,000 tons of refined copper and 600,000 tons of copper materials per year.

6. Anhui Huaxin Lead Group Co., Ltd. By actively executing the secondary lead circular economy demonstration project, [we shall] establish a capacity of 600,000 tons of secondary lead and 480,000 tons of lead deep processing by 2011. By 2020, strive to reach a capacity for 1 million tons of secondary lead and 800,000 tons of lead deep processing.

7. Tongling Huajin Mining Co., Ltd. On the basis of current capacity of 500 kg of gold per year, through introducing excellent enterprises such as China National Gold Group Corporation and Provincial Investment Group and strengthening technology upgrade and technical innovation efforts, expand underground exploration system by 300,000 tons per year to reach an annual gold output of 1.5 tons by 2011 and an annual gold output of 4 tons by 2020. 4. Policy Measures 1. Expand and properly allocate the resources in Anhui province. Strengthen the management and protection of the existing non-ferrous metals mineral resources in the province: replenish capital for geological exploration in the province, encourage and support excellent enterprises to participate in geological exploration risk projects at the provincial level, strengthen prospecting work in the periphery and deep parts of existing mines. Support the integration and reorganization of excellent enterprises with non-ferrous metal mineral resources in the province, and promote non-ferrous metal resources in the province to concentrate on excellent enterprises like Tongling Nonferrous Metals Group Holdings Ltd. 2. Speed up the implementation of the “go global” strategy. Support qualified large enterprises such as Tongling Nonferrous Metals Group Holdings Ltd. to strengthen their cooperation with foreign national resource enterprises through direct investment and purchasing equity. By multiple methods such as acquiring mining rights and mining enterprises, [we shall] strengthen efforts at foreign resource development and establish a stable long-term resource supply channel. 3. Enhance investment in geological prospecting for gold. Enhance government support and launch a new round of gold geological surveys. Actively introduce an armed gold police force to Anhui province with an organizational system to carry out long-term gold prospecting work. Explore and establish diversified investment mechanisms for geological gold exploration, and further activate enthusiasm for gold prospecting in the geological survey departments and enterprises in Anhui province. 4. Enhance the cultivation of strategically important non-ferrous metals industrial development. National industrial policy and planning permitting, introduce excellent enterprises such as China Minmetals Group and China National Nuclear Corporation to strengthen exploration and development of rare metals such as tungsten, molybdenum and uranium in our province and work hard to foster new rare metals industries. 5. Push forward enterprise mergers and reorganization. Encourage and support excellent backbone enterprises to implement trans-regional and cross-industry mergers and reorganization through various means, to realize large-scale operations and corporate management, to increase industrial concentration, and improve industrial competitiveness. Support non-ferrous metal enterprises to implement cross-industry reorganization with coal, electric power and home appliance enterprises and realize sustainable development. 6. Implement large-scale technology upgrading from high stating point. In accordance with national industrial policies on key backbone enterprises and superior products, continue to implement high intensity, high starting point technology upgrade investment projects. Seize the opportunity of the national non-ferrous metals industry revitalization and implement 195 technological upgrade projects in three years with a total investment of 29.5 billion RMB. 7. Support and develop the waste metal dismantling and processing industry. Strive to have the state set up copper dismantling and processing zones in Tongling City and Langxi County, grant Tongling Nonferrous Metals Group Holdings Co., Ltd. the qualification of designated enterprise for importing wastes containing copper and designated enterprise for the comprehensive recovery and utilization of resources, to develop the waste metals dismantling and processing industry. Support construction in non-ferrous metals industrial bases like Jieshou–Taiahe Secondary Lead Industrial Park, further improve the recovery system for renewable resources, and strive rank among national level pilot projects. 8. Strengthen support for independent innovation. Encourage strengthened cooperation between research institutions and large enterprises and enhance the development of key technologies. Strengthen R&D in cutting-edge common technologies such as short smelting processes, efficient utilization of associated minerals, comprehensive utilization of tailings and red mud, high performance special copper and aluminum material production processing, and maintenance of the quality of recycled metals. Adopt applicable advanced smelting technology upgrade and eliminate outdated capacity and improve the level of processing and equipment. 9. Push forward the pilot project for direct purchase of electricity. Support excellent backbone non- ferrous metals enterprises to engage in trial program for the direct purchase of electricity, and depending on the situation, gradually extend the scope of the pilot project. Have Tongling Nonferrous Metals Group Holdings Co., Ltd. be the first group of enterprises in the trial program for the direct purchase of electricity. Support non-ferrous metals backbone enterprises to create self-generating comprehensive utilization power plants. 5. Plan Implementation The relevant departments in the provincial government shall divide up work in accordance with the Plan, improve communication and consultation, closely cooperate, and quickly formulate and improve the various categories of complementary policies and measures, and ensure that the targets of the non-ferrous metals industrial adjustment and revitalization are reached. [They shall] establish a department to integrate the information publishing system, and announce to the public relevant information about industrial adjustment and revitalization in a timely manner. All relevant departments shall implement post-Plan evaluation work, and provide assessment comments in a timely fashion. In accordance with the targets, tasks, policies and measures designated in the Plan, all city and county governments [shall] quickly formulate an implementation plan that takes into consideration local conditions, and ensure that substantial results are achieved. All city and county governments shall report new issues and new issues that appear in specific working plans and in the process of implementation to the Provincial Economic and Information Technology Commission in a timely manner.