Stricter Safety Checks Weigh on Capacity Utilisation Rates of Iron Ore Mines in South-West China in March

SHANGHAI, Apr 10 (SMM) – In March, the capacity utilisation rates of mines in south-west China decreased, which was mainly due to stricter safety inspections on local mines and one large state-owned mine’s switch from open-pit mining to underground operations.

Sichuan: Local capacity utilisation rates declined. Mines in Bazhong city were shut down in the wake of a mine accident in late February, and they were still closed as of early April. At the same time, safety inspections on mines across the entire province have tightened following the accident, which disrupted production. A private mine stopped production in mid-March due to equipment problems, and another private mine was shut down for one month for failing to pass safety checks. Yunnan: Local capacity utilisation rates declined, mainly dragged down by one state-owned mine, whose output dropped after it switched from open-pit mining to underground operations. Private mines maintained stable production. The capacity utilisation rates of two small mines fell to 30-40% due to high costs.

Guizhou: Local small mines have not yet resumed production.