Heavy metal pollution prevention strength

On March 20th, nine ministries and commissions including the Ministry of Environmental Protection and the National Development and Reform Commission jointly held a video-telephone conference in Beijing to arrange the 2012 national campaign to rectify illegal sewage companies to protect people's health. The meeting pointed out that the most stringent measures will be taken to rectify the environmental pollution problems of heavy metals companies in key industries. The government will further implement rectification measures, increase inspection efforts, accelerate the elimination of backward production capacity of lead-acid batteries, and prevent lead-acid battery companies from rebounding in pollution. The company will comprehensively and thoroughly rectify heavy metal emission companies focusing on non-ferrous metal mining, smelting, and metallurgy, focusing on key industries and key areas involving lead, cadmium, mercury, chromium, and metal-like arsenic, and strictly implementing the “six laws” and “ "Double veto" and regional limited approval.

Lead-acid battery industry: Scale advantages and environmental protection qualified companies will continue to benefit. After the environmental protection renovation in 2011, only 377 or 19% of the enterprises in the lead battery industry are still producing. Lead-acid battery environmental protection policies and special environmental protection actions will continue to be promoted in 2012 to accelerate the elimination of backward production capacity of lead-acid batteries. For the entire lead storage battery industry, there are economies of scale in the industry, and companies with qualified environmental protection will have an advantage in market competition. This time, companies can take advantage of market changes and seize the opportunity for other companies to be shut down or rectified. Market space; and the use of opportunities for mergers and acquisitions to enhance the scale of the company. Such advantageous enterprises include: camel stocks, Nandu power supplies, etc.

Recycled Lead Industry: Policies will promote the optimization of the industry structure. The environmental protection policy will begin with the discharge of pollutants from the recycling of lead-based enterprises and their disposal, and strictly implement environmental standards to eliminate non-compliance. The renewable lead industry admittance policy will eliminate enterprises that do not meet the requirements from the criteria of enterprise scale, economic and technical indicators, and environmental protection, etc., according to the conditions of access to the conditions for the admission of recycled lead (Draft for Comment), at least In terms of scale, only about 10 companies in China can meet now. The industry structure will undergo major changes.

Other Heavy Metals Disposal Industry: Environmental protection policies intensify emission standards and enhance the prospects of low-cost raw material sources. For heavy metal recycling and disposal companies, their access to raw materials will be improved and costs may be further reduced. For example, for electroplating companies, their waste plating solution discharge and disposal will be regulated. Recycling metal companies that use waste plating liquid as raw materials can obtain more and cheaper raw materials. For example, waste plating solution is Gemme Cobalt and Nickel. One of the main raw materials for the powder business.

Investment advice: Various indications indicate that the national environmental protection standards for China's heavy metal industry are increasingly perfected and enforced more forcefully. The nine ministries continue to carry out special actions focusing on heavy metal pollution, and follow up on local policies and actions. It will become another important heavy metal industry involved, and large-scale, environmentally qualified heavy metal recycling companies will continue to benefit, focusing on Yuguang Gold & Lead, camel shares, Nandu Power Supply and GEM.