At the end of last year, SMM got to know that the 0.1-million-ton zinc smelting project, the first phase of the 0.3-million-ton zinc smelting project of Anhui Tongguan Machinery, will be put into production at the end of 2010 and this project is located at Chizhou. Due to the sharp fluctuation of zinc prices at the end of 2010, the project is postponed to 2011. It is learned that the project has been put into trial production for two months since May and will go into formal operation at the end of July.

The raw materials for the new project of Anhui Tongguan Machinery are mainly purchased domestically. Since it has not been put into formal production, there is no big demand of raw materials. After the project is officially put into production, it is expected that the production capacity could be put into full play at the end of the year. The actual production volume of the company depends on the change in zinc price.