Nanmushu Lead & Zinc Mining Project Starts Trial Production

Dec. 15 (SMM) -- On November 16th, Hanzhong Tianhongji Mining Company held a trial production ceremony for its Nanmushu lead and zinc mining project located in Fucheng Village, Nanzheng County, Shaanxi province.  Dignitaries at the ceremony included Huang Xiaoping, President of Shaanxi Non-ferrous Metal Holding Group; Lu Changchun, Vice General Manager of Shaanxi Non-ferrous Metal Holding Group; Tian Zhaofeng, President of Hanzhong Tianhongji Mining Company; Xing Keli, Deputy Secretary of Hanzhong Municipal Party Committee; Shang Zhanchao, Vice Inspector of Provincial Development and Reform Commission; Liang Jiye, Secretary of the Nanzheng county party committee.  Yang Dacai, standing committee member of Hanzhong municipal party committee and Deputy Mayor, chaired the ceremony.

Hanzhong Tianhongji Mining Company was created by the Shaanxi Non-ferrous Metal Holding Group in order to expand lead and zinc mineral resource reserves, and the Nanmushu lead and zinc mine is a key construction project set forth in the 11th Five Year Plan in Shaanxi province.  The project was started in December 2008, covers an area of 471 acres, and required a total investment of RMB 130 million.  To date, 6.925 million mt of industrial ores, as well as 287.1 kt of lead and zinc ores have been found in this mine.  Once the project comes online, it will be able to dress 1.5 kt of ores per day and produce 450 kt of ores per year.  The project has a capacity to produce 12 kt/yr of lead and zinc ores and achieve a yearly production value of RMB 110 million. 

At the ceremony, Tian Zhaofeng, President of Hanzhong Tianhongji Mining Company, confirmed the achievements of Hanzhong Tianhongji Mining Company.  He said the trial production of this project represents the successful construction of the first lead and zinc mine in the Beiba mining region of Nanzheng city.  It is also the result of cooperation between the Hanzhong municipal government and Shaanxi Non-ferrous Metal Holding Group, and will transform resource advantages to economic advantages for the economy of the mountainous region.  

Wang Dingwang, General Manager of Hanzhong Tianhongji Mining Company, related the  construction progress of the project and expressed his sincere thanks to all people who had made contributions to the project.  He vowed smooth operation of the project and great  contributions to local economy.

Hanzhong Tianhongji Mining Company oversaw the development of the Nanmushu lead and zinc dressing plant, and its successful opening will increase the company’s self-sufficiency rates for lead and zinc concentrate. 

The new plant is approximately 300 km from Difeng County, where the Shaanxi Qiandongshan Mining Company operations are located.  The two mines have some differences in ore grades, with ores from the Qiandongshan mine with grades of 5-6%, while ores from Nanmushu mine are usually 3%.  A total of 6.925 million mt of industrial ores, as well as 287.1 kt of lead and zinc mineral resources, have been confirmed in Nanmushu mine.

Fully exploiting the Nanmushu lead and zinc mine will increase concentrate supply for the company and maintain stability in raw material grades, helping efficiently mix ores.  The Nanmushu lead and zinc mine is designed to process 1.5 kt of ores per day, and produce 450 kt/yr.  It can also produce 12 kt/yr of lead and zinc concentrate.  SMM expects the self-sufficiency rates for lead and zinc concentrate at Shaanxi Non-ferrous Metal Holding Group will surpass 10% and 20%, respectively, within the next two years.