Taking in hand: Chinas government is
pushing the consolidation of amorphous
graphite production in Hunan province.
Pictured is a graphite sample from
Qingdao Haida Graphite.
The consolidation of Chinas amorphous graphite industry is set to impact the supply-demand balance for 2012 and 2013 and will result in a loss of global supply.
The continuing government-backed consolidation programme in the Lutang area of Hunan province is seeing over 230 mines reduced to 20.
The majority of active mines in Lutang are small- to medium-size sites that have been active for decades, but there have been questions over their safety and environmental impact.
This has forced the government to close and merge the vast majority of the mines, which are now all run through a new entity called Southern Graphite Ltd.
As reported by IM, the overhaul - which began in September 2011 - will see a significant...