Yaojialing Mine Confirms 1.55 Million mt in Reserves of Copper, Lead, and Zinc

Shanghai, Jan. 24 (SMM) -- A recent exploration report for the Yaojialing Mine in Nanling County of Anhui Province was certified on January 6th, confirming 333 types of mineral resources, including total reserves of 1.5547 million mt of copper, lead, and zinc.  The reserves also contain 32.25 mt in gold and 382 mt of silver.  The zinc and gold reserves have a potential economic value exceeding RMB 50 billion.

The Yaojialing mine is located east of the Tongling copper and gold mine in Nanling county of Anhui province.  Previous prospecting results were disappointing, but in 1998, Team 812 of the Metallurgy Geographic Survey Ministry of East China adopted new methods which led to the discovery of a large poly-metallic ore reserve, consisting mainly of zinc and gold.

Lead output in Anhui province from January to November 2010 was 737.5 kt, up 38.26% YoY from the same period of 2009 and accounts for 19.5% of China’s total lead output.  Increases in lead output were mainly from the rapid development of secondary lead producers.  Anhui province is the leading secondary lead producing region in China.  Secondary lead output at Anhui Huaxin Lead Industry (Group) Company reached 500 kt in 2010, up 150 kt from a year earlier.  Output of Anhui Tongguan Non-ferrous Metal Company, the major primary lead producer in Anhui province, was 84.7 kt in 2010, up 7,700 mt from the 77 kt in 2009.  In general, primary lead producers are developing slower than secondary lead producers.

Lead concentrate output in Anhui province from January to November 2010 totaled at 2,422 mt, a YoY growth rate of 133.45%, but still accounting for less than 0.2% of China’s total output.  The limited lead concentrate reserves in Anhui province are limiting development of the primary lead industry to an extent.  The confirmed 1.55 million mt in copper, lead and zinc reserves will help lay the foundation for further development of the primary lead industry in Anhui province.