Chihong Zinc & Germanium shuts down some smelting plants and makes impairment provision of RMB1.868 billion
2016-12-27 16:14:06 [Print]
Chihong Zinc & Germanium Co., Ltd. announced today that in order to reduce operating costs, optimize the allocation of internal resources and promote the transformation and upgrading of the company, they will shut down some uncompetitive smelting plants and make impairment provision of RMB1.868 billion, which will lead to an equal reduction in net profits obtained by the company in 2016.
According to the announcement, Chihong Zinc & Germanium will slash smelting capacity in Yunnan Lancang Lead Mine Co. Ltd. and Daxinganling Yunye Mining Development Co., Ltd. and make an impairment provision for fixed assets of Hulunbuir Chihong Mining Co., Ltd.
At present, Chihong Zinc & Germanium together with its subsidiaries has six smelting plants in total. The company plans to shut down Yunan Lancang Lead Mine Smelting Plant and Daxinganling Yunye Electrolytic Zinc Smelting Plant with a total capacity reduction of 40,000tpy of electrolytic zinc and 10,000tpy of electrolytic lead. Currently, the two smelting plants have been out of production.
In addition, Chihong Zinc & Germanium will make an impairment provision for Hulunbuir Chihong Smelting Plant that has maintained normal production for nearly two months, which is expected to result in a decline of RMB1.475 billion in net profits in 2016. Construction of the Hulunbuir Chihong Smelting Plant started in July 2010 and the plant was put into normal production after pilot production on the 31st October, 2016 with an annual capacity for 60,000t of electrolytic lead and 140,000t of electrolytic zinc.
The two impairment provisions mentioned above will lead to a decrease of RMB1.868 billion in net profits obtained by the company in 2016.
According to the announcement, Chihong Zinc & Germanium will slash smelting capacity in Yunnan Lancang Lead Mine Co. Ltd. and Daxinganling Yunye Mining Development Co., Ltd. and make an impairment provision for fixed assets of Hulunbuir Chihong Mining Co., Ltd.
At present, Chihong Zinc & Germanium together with its subsidiaries has six smelting plants in total. The company plans to shut down Yunan Lancang Lead Mine Smelting Plant and Daxinganling Yunye Electrolytic Zinc Smelting Plant with a total capacity reduction of 40,000tpy of electrolytic zinc and 10,000tpy of electrolytic lead. Currently, the two smelting plants have been out of production.
In addition, Chihong Zinc & Germanium will make an impairment provision for Hulunbuir Chihong Smelting Plant that has maintained normal production for nearly two months, which is expected to result in a decline of RMB1.475 billion in net profits in 2016. Construction of the Hulunbuir Chihong Smelting Plant started in July 2010 and the plant was put into normal production after pilot production on the 31st October, 2016 with an annual capacity for 60,000t of electrolytic lead and 140,000t of electrolytic zinc.
The two impairment provisions mentioned above will lead to a decrease of RMB1.868 billion in net profits obtained by the company in 2016.
Zinc Oxide 99.7%min EXW China
Unit:RMB/mt
China refined zinc producers' number MoM output increase statistics by province by month
Unit: pcs
