EMM Producers Accelerate Integration Pace

SHANGHAI, Jun. 13 (SMM) -- EMM producers are in the process of integration now. A batch of excellent companies with both resource and technology advantages will spring up after the integration, and those backward EMM producers are going to be eliminated soon.
According to SMM sources, China’s EMM producers are mainly concentrated in Hunan, Guizhou, Guangxi provinces as well as Chongqing. Since 2011, integration of EMM producers in these areas and manganese deep-processing industrial chain projects have been developing rapidly.

The Jishou City in western Hunan province launched an integration strategy on June 8th 2011, which requires manganese companies to move eastward to the Hexi Industrial Zone, and zinc companies to move southward. The original 8 EMM producers were integrated into 2, with capacities reaching above 30 kt/yr.

What should be noticed is that construction of Hunan Dongfang Mining Company, China’s largest EMM producer, began on April 29th 2011 in Huayuan County of western Hunan province. This company was, as a matter of fact, a result of integration of the original 8 EMM producers. All together, there are only 12 such kind of manganese companies in Huayuan County, and the behavior of integration indicates higher industrial concentration of EMM producers.

Meanwhile, integration is also implemented in Xiushan cunty of Chongqing.  By the end of late May, local government asked EMM producers in Xiushan county to halt production completely for integration. According to SMM sources, large scale EMM producers are asked to improve environmental protection standard, while small scale producers are suggested to be consolidate into large producers.
According to SMM source, EMM main producing regions not only make efforts to promote integration of EMM industry, but also built a series of deep-processing projects based on local resource advantages. It is reported that, EMM deep processing and back-up projects began officially construction on May 16, 2011 in Tongren region.  The project is invested by Chongqing Wujiang Industry Group with RMB 4 billion, and covers an area of 3200 mu, including at 160 kt of EMM capacity, 320 kt of sulphuric acid and back-up waste heat power generation capacity, 40 kt of lithium manganese oxide capacity, 40 kt of polar plate capacity, manganese-slag produced new material capacity, and other EMM deep processing capacities. The project is carried out into two phases, with the first phase constructed from 2011 to 2013, and the second phase constructed to 2013 to 2016.  Meanwhile, construction of Hunan Tianxiong Group’s of 50 kt of EMM project in Malipo goes on smoothly. The project is invested by Shenzhen Tianxiong Port and Mining Investment Company with RMB 1 billion, and covers an area of 827.8 mtu, integrating in power generation, mining and smelting.  The project began construction from January 2011, at cost of RMB 430 million, accounting for 43% of total investment.

SMM believes that EMM industry will develop in a more healthy and sustainable fashion, thanks to higher degree of industrial concentration and larger scale after integration. 

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