SMM 2017 Lead & Zinc Summit: Lead Ore Production to Reduce on Environmental Checks

SHANGHAI, May (22) – How environmental protection inspection impacts production at mines? See answers on SMM 2017 Lead & Zinc Summit held on May 20.

SMM: China launched stricter environmental checks in 2017. Will environmental protection and safety inspection impact mines’ production this year, or even for years?

One large mine in southwest China indicated that local governments pay close attention on environmental protection and call mines to rectify frequently, but mines don’t need to shut down with small problems. Enterprises also take it seriously, as output suspension will lead to more losses than gains, despite of rising workload and fund on environmental protection.

Local governments hope enterprises to reach environmental standard, and enterprises also wish to stay normal production, because output suspension, will reduce tax revenue at governments and bring losses at enterprises, leading to “lose-lose” result. Stricter environmental checks will increase production cost, such as it in water treatment, but it will make limited impact if enterprises have preparations.

Collections of Stories in Base Metal Market at SMM 2017 Lead&Zinc Summit

SMM: Where will TCs for lead concentrate go in the year?

TCs for lead concentrate will hold the level seen in late 2016 throughout 2017, as lead concentrate supply will remain tight in 2017, Zhang Liangliang foresees. Stricter environmental protection inspections lead to output halts at some small mines, reducing lead concentrate output.
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