September 08, 2008

Mongolia continues to eliminate backward steel and non ferrous metals production capacity

As China’s major iron and steel, non ferrous metals production base, Inner Mongolia Autonomous Region will continue to eliminate backward iron and steel, non ferrous metals production capacity in order to implement energy saving and emission reduction requirements.

Relying on abundant mineral resources, the metallurgical industry in Inner Mongolia developed greatly in recent years. In 2007, Inner Mongolia produced 10.4 million tonnes of steel, 1.35 million tonnes of ten kinds of non ferrous metals up by 20.8% and 52.2% respectively. It is expected that the output of ten kinds of nonferrous metals in 2008 will break through 2 million tonnes.

According to Mr Ya Saning director of Inner Mongolia Autonomous Region Economic Commission that in order to optimize the metallurgical production mix, and raise the development level, Inner Mongolia will continue to promote the reorganization of steel industry and eliminate iron making enterprises whose blast furnace is under 300 cubic meters on the basis of closing 91 small steel enterprises, eliminating 3.693 million tonnes production capacity in 2007.

It strives to achieve the goal that compressing 5.463 million tonnes of backward steel production capacity in 2009. At the same time, it will continue to compress 40,000 tonnes of nonferrous metals production capacity this year.

Additionally, Inner Mongolia substantially raises admittance standard for metallurgical industry in this year and will mainly develop special steel, stainless steel and deep processing industrial chain, in order to make the proportion of special steel and high quality steel be over 65% within four years.