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Anhui Province People's Government Notice on Issuing Anhui Province Anhui 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, Tongling Nonferrous Metals Group Holdings Limited produced 650,000 tons of electrolytic copper (including the 175,000 tons produced by Zhangjiagang Co.), ranking second in China. 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. Fuyang’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
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