China released a detailed three-year plan to stimulate its nonferrous metal industry focused on industrial restructuring and technology innovation, the State Council, or the country's Cabinet, said here on Monday.
The nonferrous metal sector should keep a steady operation in 2009, and achieve a sustainable development by 2011, according to the plan.
The country would encourage regrouping among nonferrous metal companies to sharpen the competitive edge of the whole industry, the plan said.
Three-to-five nonferrous metal corporation would be formed out of industrial reconstructing by 2011 with advanced production capacity and technology innovation capability.
Combined copper output of top 10 domestic producers should take up 90 percent of the country's total by 2011, aluminum output 70 percent, lead 60 percent, and zinc 60 percent, according to the State Council.
The government would also encourage the exploitation of nonferrous metals both at home and abroad, supporting companies to invest in mines overseas -- either on their own or with foreign parties.
The country would help with capital injection and foreign reserve application concerning overseas projects.
The export rebate policy would be a "proper" and "flexible" one to encourage nonferrous products with high technology and high added values, according to the plan.
The State Council also laid out guidelines to eliminate obsolete capacity and digest over capacity. No new project to develop electrolytic aluminum will be allowed in the next three years, the plan said.
The country would put strict control on the production of copper, lead, zinc, titanium and magnesium.
At the same time, China aims to save 1.7 million tonnes of coal and 6 billion KWh of electricity per year, as well as reduce sulfur dioxide by 850,000 tonnes annually as part of industrial upgrading for the nonferrous metallurgy sector.
China was the largest producer and consumer of nonferrous metals with total output of ten major nonferrous metals reaching 25.2 million tonnes and total consumption at 25.17 million tonnes in 2008.
The country's nonferrous metal industry received a severe blow from the global economic downturn after keeping high-speed growth for nearly a decade.
Statistics released by the China Nonferrous Metals Industry Association showed aggregate profit of China's nonferrous metal producers fell 45 percent last year to 80 billion yuan (US$11.73 billion).
Along with the support plan for the nonferrous metal sector, the State Council has unveiled stimulus packages for 10 industries since January, such as machinery-manufacturing, electronics and information industries, the light industry and petrochemical sectors.
(Xinhua News Agency May 11, 2009)
