UPDATE 1-China halts mine approval for antimony, tungsten

Published: 07 May 2009 03:20:26 PST

HONG KONG, May 7 - China has suspended the approval process for new antimony, tungsten and rare earth mines until the end of June next year, excluding selected projects, to preserve its resources for future need.

China, the world's top producer of the three types of metals, widely used in heavy and light industries, is also limiting mining of tungsten to 68,555 tonnes and rare earth to 82,320 tonnes this year, according to a document posted on Ministry of Land and Resources' website. (www.mlr.gov.cn)

The country also set a mining quota on antimony to 90,180 tonnes this year for the first time.

Hunan province is alloted the biggest quota for 36,000 tonnes of antimony this year. The province is the home of the country's top antimony producer, Hsikwangshan Twinkling Star, controlled by Hunan Nonferrous Metals <2626.HK>.

An executive at Hsikwangshan said Beijing was expected to release another document to detail the quotas and how to imply the new policy.

"The new policy should have bigger impacts on small mines," he added.

Hsikwangshan plans to produce 28,000 tonnes of antimony this year versus 25,000 tonnes last year, the executive said.

He said the firm's exports of antimony had fallen to 70 percent of its monthly production from more than 80 percent of the monthly output last year due to reduced demand in overseas markets.

The firm was offering exports of spot antimony ingot at $4,800 a tonne for delivery to Rotterdam, he said.

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