Yunnan Chihong to Increase Lead, Zinc Conc. Purchases as 2013 Profit Up 28.8% YoY

SHANGHAI, Apr. 17 (SMM) - Yunnan Chihong Zn & Ge Co. reported a 28.8% gain in 2013’s net profit and said it would increase concentrate purchases this year to feed expanded production capacities.

The company made a net profit of 589 million yuan ($95 million) last year or 0.379 per share, it told Shanghai Stock Exchange today.

``Lead and zinc industry will see the trends in the intensification of efforts in environmental protection, energy saving and emission reduction, and will see the difficulty of resolving overcapacity in a short term, and is expected to remain in a downturn in 2014,’’ Yunnan Chihong said in its full-year financial report.

The company will increase purchases of lead and zinc concentrates to feed a renovated 160,000-tpy smelting plant in the Huize county of Yunnan province and a new 200,000-tpy plant in Inner Mongolia’s Hulunbuir, it said.

Yunnan Chihong plans to make 250,000 tonnes of zinc and the metal products this year, as well as 100,000 tonnes of refined lead and 120 tonnes of silver, it said.

It produced 90,280 tonnes of refined zinc, 70,910 tonnes of refined lead and 67.8 tonnes of silver in 2013, it said.