SHANGHAI China might soon
double the minimum capacity required for companies to start
secondary aluminum production.
New secondary aluminum producers
must have a capacity of at least 100,000 tonnes per year,
according to draft rules issued Jan. 28 by the countrys
Ministry of Industry and Information Technology (MIIT).
The earlier requirement, issued
in 2007, was for a 50,000-tonne-per-year capacity.
Chinas scrap aluminum
industry is dominated by thousands of small-scale, family-owned
operations, with Ye Chiu Group and Shanghai Sigma Metals Inc.
the only big players.
The new draft rules further
stipulate that the ratio of equity capital in such investment
projects must be a minimum of 35 percent. This wasnt a
requirement under the earlier rule.
New plants also must be equipped
with facilities to treat hot ashes left over from production in
order to raise metal recovery rates and protect the
MIITs new draft rules were issued after the ministry
and 11 other government bodies set out guidelines on Jan. 22
for consolidation and restructuring of nine industries,
including aluminum, rare earths and steel.
A version of this article was first
published by AMM sister publication Metal