Yuguang Gold & Lead To Raise Recycled Lead Use Next 2-3 Yrs

SHANGHAI, Jul 01, 2010 (Dow Jones Commodities News Select via Comtex) -- China's Hennan Yuguang Gold & Lead Group Co. (600531.SH) plans to increase its recycled lead output over the next two to three years, a company official said Thursday.

"We hope to increase our recycled lead capacity in the coming years, and we've bought an advanced production line from abroad," the official at the country's largest lead producer by output, who declined to be named, said.

He said recycled lead production will account for about a quarter of the company's total refined lead production of 350,000 metric tons this year.

Last year, Yuguang produced 310,000 tons of refined lead, of which 60,000-70,000 tons was sourced from recycled material, the official said. He didn't provide a forecast for production beyond this year.

The company has shut 50,000 tons of lead sintering capacity, after the Chinese government called for an effort to reduce the environmental impact of smelting following a series of lead pollution incidents last year, the official said.

He declined to immediately elaborate.

Using a higher proportion of recycled lead would likely reduce Yuguang's reliance on imported lead concentrates, while more advanced smelting processes than sintering, which involves heating metal powder in a furnace, could lessen the risk to the environment.