China’s second largest refined tin producer, Yunnan Chengfeng has currently stopped production at its Gejiu plant due to electric power limitations. Many metals companies and other enterprises in China have been affected recently as local governments try to meet energy savings targets set under the current 2006 – 2010 five year plan. Chengfeng produced 14,947 tonnes of refined tin in 2009, making it the sixth largest tin producer worldwide.
The plant will be closed for at least 20 days, but no firm date for a resumption of production has been decided. Since September, the production from Chengfeng has been disrupted by the power supply policy taken by the local government. A spokesman indicated that even if they restart, restrictions on electricity supply could continue to affect operations for the rest of the year. All three of China’s major producers have now announced reduction in production in the next few months. The largest producer, Yunnan Tin, recently brought forward a maintenance shutdown of its smelter, while China Tin has also said that its production in the final quarter will be reduced due to power restrictions.
