Capacity utilisation rates in Inner Mongolia rose in April, contributed by both private and state-run mines.
In April, the reasons for the increase in capacity utilisation rates include 1) Output at some mines increased as the influence of the Two Sessions on explosives supply abated. 2) A state-owned mine started a crushed stone recycling production line, increasing its concentrate output. 3) The production resumption of several beneficiation plants brought some output increases. 4) Fewer days of maintenance also accounted for the growth in capacity utilisation rates.
The environmental protection and safety inspections were still strict in Guyang County, so most of the small mines there that ceased production had no clear time schedules for production resumption. The supply of local concentrates was still tight. Due to the difficulty in purchasing ROM and its low prices, the capacity utilisation rates of local beneficiation plants were low.
It is expected that in May, the capacity utilisation rates of mines in Inner Mongolia may further increase, driven by medium and large private enterprises that recovered production after being closed for environmental protection and safety issues.
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