TOKYO, Jan 5 (Reuters) - Sumitomo Metal Mining Co Ltd
(5713.T), Japan's second-largest copper smelter, said it has cut
its copper production plan by 7 percent for the six months to
March as the economic slump eats into demand for the metal.
The company now plans to produce 201,000 tonnes of copper in
October-March, down from 215,000 tonnes it planned in April.
The deepening global recession has led to a sharp fall in the
use of industrial metals including copper, which has a range of
applications from electronics and construction to automobiles.
"We have decided to reduce output in January-March due to the
sharp decline in nonferrous metals demand as a result of the
deterioration in the real economy," the company said in a
statement.
A senior Sumitomo Metal Mining official had told Reuters in
December that the company planned to cut copper output in the
January-March quarter due to weakening demand. [ID:nT327296]
Sumitomo Metal Mining will also curb output of nickel, which
has been hit by poor demand for semiconductors as well as lower
production of automobiles.
It will cut zinc output as well due to a sharp decline in
exports, and the company said it has decided to move forward to
March maintenance checks that it had originally planned to
undertake in April.
It will now conduct maintenance checks at its Harima Smelter,
which produces zinc and lead, for about 23 days in March.
The table shows the company's revised output plan compared
with its initial plan (in tonnes for base metals, kg for precious
metals):
H2 08/09 H2 08/09 decline
(revised) (initial) (%)
Copper 201,000 215,000 7
Electrolytic nickel 15,000 18,100 17
Ferro nickel 8,300 10,900 24
Zinc 35,700 42,500 16
Lead 13,600 14,700 7
Gold (kg) 20,000 22,000 9
Silver (kg) 145,000 153,000 5
(Reporting by Miho Yoshikawa; Editing by Chris Gallagher)
