China's Muli expects to output 6,000 mt antimony trioxide in 2007

Hong Kong (Platts)--23Jul2007

China's Yunnan Muli Antimony Mine is on target to produce about 6,000
mt/year of antimony trioxide in 2007, a company official said Monday. The
company will also produce about 3,000 mt of antimony ingots this year.

"Our antimony ingot output is used as raw material to produce antimony
trioxide. But this is not enough for our trioxide production and we have to
source more ingot from other local producers in China," the official said. He
added that the company has its own antimony mine.

"The supply of antimony products in China will only get tighter as
recently more producers in the Hunan region had to stop production due to the
country's rising environmental concerns," he said. This would probably lead to
higher prices for antimony products, he added.

Muli is offering antimony trioxide at present at Yuan 38,500 ($5,090)/mt
FOB Huangpu, the official said. It sells 70% of its antimony trioxide products
overseas and the rest in the domestic market.

Production costs had become higher for Chinese producers following the
cancellation of the 5% export rebate on antimony trioxide with effect from
July 1, the official said. "I expect the prices are likely to rise further
later this year," he added.



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Chinese antimony market