The total output of iron ore concentrates in North China’s Hebei is likely to reach 5.2 million tonnes in February 2023, rising 236,600 tonnes or 4.8% from the same period in 2022, according to Mysteel’s assessment.
After having halted operations since early October, some ore miners in Hebei are set to restart production after the Chinese New Year holiday over January 21-27, which is likely to lift the province’s iron ore concentrates output overall, Mysteel’s latest survey found.
In October, authorities in Hebei called a halt to most mining operations in local areas to ensure that no accident would happen during the staging of the 20th National Congress of the Communist Party of China held during October 16-22 in Beijing, as Mysteel Global reported.
The miners haven’t resumed production yet as the distribution of explosives is still forbidden by the local government due to the deteriorating air quality in Hebei, and the availability of run-of-mine iron ore keeps tightening in the province, Mysteel Global learned.
Nevertheless, most surveyed ore miners with an annual production capacity above 300,000 tonnes/year of concs confirmed that as soon as local authorities lift the ban on explosive distribution, which is expected to take place early next year, they will restart operations immediately.
On the other hand, 40% of the survey respondents shared that they have received official notification that small-sized miners with a concs production capacity below 300,000 t/y are not allowed to resume production next year.
On December 7, Hebei’s Administration of Work Safety and other departments jointly issued a series of special rectification measures for the production safety of non-coal mines, aiming to eliminate non-coal mining capacities with unqualified production environments, Mysteel Global learned.
“The government wants to ensure a safe production environment, while safety systems in small mines are generally not sound,” said an official with a miner in Hebei. “It seems unlikely for small miners to restart production unless they merge into a larger one,” he noted.
Written by Anthea Shi, shihui@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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