The Chinese government has announced the closure of old and outdated capacity. The Ministry of Industry and Information Technology has said it will close 330kt of copper capacity, and 600kt of lead and zinc capacity in 2010. The capacity shut-down is expected to complete before the end of September Quarter. These forced closures will affect old an inefficient producers and is designed to improve environmental standards and boost efficiency nationally. The ministry also stressed that no further projects will be approved in 2010 in industries with excess capacity, leaving open the option of measures such as increased land cost and increasing electricity prices to weed out less efficient producers.
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