Dongfang Gold & Lead Company Lead Smelting Project(Phases II) to Commence

A company source says this part (Phase II) of Henan Jiaozuo Gold and Lead Co., Ltd.’s 100,000-ton oxygen-rich under-gate blast lead smelting project of will start construction in 2010.

According to the source, a specific schedule has not been drawn up for the extension project, but it is expected to commence construction in the first half of 2010, lasting one year.“The most environmentally-friendly oxygenrich under-gate blast lead smelting processes have been adopted in the project, which is expected see production as early as 2011.”

After the project reaches production, the company’s smelting capacity will increase from the current 60,000 tons/year to 160,000 tons/year.It is reported that the current monthly output of lead ingot from the existing 60,000 tons from the company’s lead sintering machine is 3500 tons.

Since lead ingot has maintained a low price of RMB15300-15500/ton in the domestic market,the company has suspended sales of lead ingot.Currently, the company uses a sales price of RMB 16000/ton, but this is threatened by weak demand. Currently, the company’s lead ingot stock exceeds 1000 tons.