Holidays, weather sharply lower operating rates across lead concentrate producers

SHANGHAI, Feb 20 (SMM) – Operation across lead concentrate producers in China further slowed in January as inclement weather prompted more mines located in high altitudes to suspend and as workers left for the Lunar New Year holidays.

The average operating rate across 86 lead concentrate producers, with capacity of 767,000 mt/year, fell to 30.1% in January, down 15.4 percentage points from a month earlier, an SMM survey showed.

The rates across large producers with annual capacity of more than 10,000 mt declined 16.4 percentage points last month. Most mines in Inner Mongolia and Tibet shut last month amid adverse weather while mines in Hunan lowered production on labour shortages.

The rates across medium-sized producers with annual capacity of 5,000-10,000 mt lost 15.6 percentage points. Holiday impact, maintenance at some mines in Guangxi and the expiration of mining permits of some mines in Liaoning affected output.

The rates across small producers with annual capacity of less than 5,000 mt fell 6.9 percentage points. Some producers in Fujian suffered shortages of run-of-mine ores while equipment at some producers in Jiangxi broke down.