China Jiangxi Copper Building Lead, Zinc Smelters

HONG KONG, July 7 -- The parent of Jiangxi Copper (0358.HK) (600362.SS) is building a 200,000-tonne-per-year lead smelter and a 200,000-tonne-per-year zinc smelter in China's Jiangxi province, a company spokesman said on Tuesday.

    Pan Qifang said construction of the two smelters would be divided into two phases and completed within five years from 2009.

    He said the parent might inject the lead and zinc smelters into the listed arm, China's top copper producer.

    "Injection into the listed arm will depend on how profitable the two smelters are. It also needs approval from the local government," Pan told Reuters.

    The parent is controlled by the Jiangxi government, which has endorsed the copper company to consolidate copper, lead and zinc resources in the province.

    Copper mining and production is carried out by the listed arm, which can produce 900,000 tonnes of refined copper per year.

    Pan also said listed Jiangxi Copper had applied to Beijing for approval to buy electricity directly from power companies, which would help it save power costs.

    (Source: Reuters)