Chinese Henan Yuguang Gold & Lead Group's refined lead and refined copper output hit historical highs in 2016 at 408,700 mt and 115,100 mt, up 17% and 21% year on year, respectively, the company said Wednesday.
The sharp rise was attributed to supply side reforms in the country and demand support last year, the miner said in its annual report filed to Shanghai Stock Exchange.
Gold and silver output last year hit 6,022 kg and 793 kg, up 50% and 12% year on year, also historical highs, data from the producer showed.
The higher output was due to stable growth in the Chinese economy and China's continuous supply side reforms, according to the company.
Henan Yuguang Gold & Lead said the surplus in domestic production capacity has been effectively reduced, which resulted in a rebound in commodity prices in H2 2016, from rock-bottom levels in H1 2016.
Shanghai Futures Exchange's main lead futures contract and spot domestic lead price in 2016 averaged at Yuan 14,664/mt ($2,200/mt) and Yuan 14,530/mt ($2,180/mt), respectively, up 13.6% and 11% year on year.
For 2017, the company has set a target of 410,000 mt for refined lead, 110,000 mt for refined copper, 7,000 kg for gold and 1,000 kg for silver.
Meanwhile, the company is looking to invest Yuan 1.9277 billion to build a new recycled lead smelting project in Jiyuan city of Henan province, which will have a refined lead output capacity of 160,000 mt/year, zinc oxide capacity of 24,000 mt/year and copper floating slag capacity of 20,000 mt/year. This project is expected to generate an annual revenue of around Yuan 5.3765 billion upon full operations. Construction and completion datelines were not disclosed.
