China to close small recycled lead producers - policy draft

HONG KONG Aug 18 (Reuters) - China plans to tighten controls over production of recycled lead and phase out plants that can produce less than 30,000 tonnes a year before 2013, a draft of the policy showed on Thursday.

The draft, posted on the Ministry of Industry and Information Technology website, showed that China will allow the construction of new lead recycling plants with a capacity of over 50,000 tonnes a year.

The draft sets requirements on the collecting and processing of used lead-acid batteries, which are used to produce recycled refined lead in China.

Large- and medium-scale primary lead smelters are encouraged to collect and process used lead-acid batteries as feed for their production of refined metal, according to the draft, which did not say when the policy would take effect.

Currently, recycled lead producers typically buy used lead-acid batteries in the domestic market as feed, but scattered collecting and processing systems make it difficult for local authorities to impose rising environmental standards.

China phased out 583 lead-acid battery producers, processors and recyclers as of end-July as Beijing cracks down on polluting operations, the Ministry of Environmental Protection said earlier this month.

The recent nationwide crackdown covered 1,930 plants, of which 1,015 plants also closed temporarily for checks or upgrading, resulting in a total 1,598 plants, or 82.8 percent of the total, shutting down.

(Reporting by Polly Yam; Editing by Jonathan Hopfner)