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SMM Survey: Latest Survey on Environmental Crackdown at Manganese Mine Operators in Huayuan Region Hunan Province
Aug 24, 2010 17:51CST
Source:SMM

SHANGHAI, Aug. 24 (SMM) -- Environmental crackdown at manganese mine operators in Huayuan region of Hunan province continued. Local government will shut down production at some mine operators, require some mine operators to improve technology in order to meet environmental standard and encourage M&A activities within mine operators. 

According to SMM sources, 30 small mines will be reduced into 2-3 large mines in Huayuan region after integration. The release of this news arouses hot discussion. However, any specific plan for the crackdown is still unavailable due to complexity of this task. In this context, the completion of crackdown at manganese mines will extend at least to October. 

As mine operators are prohibited from exploiting manages ore till October, EMM producers inXiangxi region whose iron ore supply is mainly from Huayuan are looking for manganese ore actively. According to SMM sources, surcharges for EMM producers in Xiangxi region of Hunan province to purchase manganese ore from Chongqing and Guizhou are high, so most EMM producers in Xiangxi region of Hunan province are looking for substitution with relatively lower grades. However, their iron ore supply is still limited.

In this context, operating rates at EMM producers in Xiangxi region will slip further for short raw material supply, as current manganese ore inventory can only be consumed for a month but mine operator will not resume production until October.

 

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