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PoliciesforDevelopmentofIronandSteelIndustry

Theironandsteelindustryisanimportantbasicindustryofthenationaleconomy,asupportingindustryforrealizingtheindustrializationandanintensiveindustryintechnologies,capital,resourcesandenergy,anditsdevelopmentrequiresacomprehensivebalancingofallkindsofexternalconditions.Chinaisabigdevelopingcountrywithacomparativelybigdemandofironandsteelintheeconomicdevelopmentforalongtimetogo.China'

sproductioncapacityofironandsteelhasrankedthefirstplaceintheworldformanyyears.However,thereisalargegapintermsofthetechnologicallevelandmaterialconsumptionoftheironandsteelindustrycomparedwiththeinternationaladvancedlevel,sothefocusofdevelopmentforthefutureshallbeputontechnicalupgradingandstructuraladjustment.Inordertoenhancethewholetechnicalleveloftheironandsteelindustry,promotethestructuraladjustment,improvetheindustriallayout,developarecyclingeconomy,lowertheconsumptionofmaterialsandenergy,payattentiontotheenvironmentalprotection,raisethecomprehensivecompetitivecapacityofenterprises,realizetheindustrialupgrading,anddeveloptheironandsteelindustryintoanindustrywithinternationalcompetitivecapacitythatmaybasicallysatisfythedemandofthenationaleconomyandsocialdevelopmentintermsofquantity,qualityandvarieties,wehaveformulatedthepoliciesfordevelopmentoftheironandsteelindustryaccordingtotherelevantlawsandregulationsandthedomesticandinternationalsituationsthattheironandsteelindustryfacessoastoguidethesounddevelopmentoftheironandsteelindustry.

ChapterIAimofthePolicy

Accordingtotherequirementofourcountry'

seconomicandsocialdevelopmentandthesituationofresources,energyandenvironmentalprotection,theproductioncapacityofironandsteelshallmaintainatareasonablescale,whichmaybespecificallyresolvedintherelevantplanning.ThecomprehensivecompetitivecapacityofironandsteelindustrymayreachtotheinternationaladvancedlevelsothatChinamaybecomealargecountryinironandsteelproductionandagreatpowercountryinworld-widecompetitive.

Bytheyear2010,throughthemeansofstructuraladjustmentofproducts,theproportionofgoodironandsteelproductsshallbeelevatedconsiderably,themajorityofproductsshallbebasicallysatisfiedthedevelopmentrequirementsofmostindustriesinthenationaleconomysuchasconstruction,machinery,chemicalindustry,auto-mobiles,householdappliances,vessels,traffic,railway,militaryindustryandnewindustries.

Wemayelevatetheindustrialconcentrationbymeansoforganizationalandstructuraladjustmentoftheironandsteelindustry,andexpandthescaleofthosebackboneenterprisegroupswithcomparativeadvantagesbymeansofamalgamateandreorganization.By2010,thenumberofironandsteelsmeltingenterprisesshallbeconsiderablyreducedandtheproductioncapacityoftheironandtheoutputofsteelenterprisegroupsthatranktop10inthedomesticmarketshallbereachedto50%andaboveofthenationaltotalproductioncapacity;

by2020,theproportionshallbereachedto70%andabove.

Bymeansoflayoutadjustmentoftheironandsteelindustry,by2010,theunreasonablelayoutshallbeimproved;

by2020,acomparativelyreasonableindustriallayoutthatcomplieswiththesupplyofresourcesandenergy,allocationoftrafficandtransportation,supplyanddemandofthemarketandenvironmentalcapacityshallbeformed.

Accordingtotheconceptofsustainabledevelopmentandrecyclingeconomy,weshouldelevatethecomprehensivelevelofenvironmentalprotectionandresourceutilization,andshouldsaveenergyandlowerconsumption.Weshouldelevatethecomprehensiveutilizationcapacityofwastegases,waterandrubbishestothelargestpossibleextent,striveforthegoalofrealizing"

zerodischarge"

andestablishironandsteelfactoriesoftherecyclingtype.Theironandsteelenterprisesmustdevelopthebusinessofgeneratingpowerbyusingreclaimedheatandenergy.Anironandsteelassociatedenterprisewiththeproductionscaleofmorethan5milliontonsshallstriveforthegoalofhavingmorethanenoughpowertosupportitselfandprovidingthesurplustooutsiders.By2005,thecomprehensiveenergyconsumptionforeachtonofsteelshallbeloweredto0.76tonofstandardcoal,thecomparableenergyconsumptionforeachtonofironshallbeloweredto0.70tonofstandardcoalandthewaterconsumptionforeachtonofsteelshallbeloweredtolessthan12tonsinthewholeindustry;

by2010,thecorrespondingindexshallbeloweredto0.73tonofstandardcoal,0.685tonofstandardcoalandlessthan8tonsofwater,respectively;

by2020,thecorrespondingindexshallbeloweredto0.7tonofstandardcoal,0.64tonofstandardcoalandlessthan6tonsofwater,respectively.Thatis,inthecoming10years,theironandsteelindustryshall,onthepreconditionthatthetotalconsumptionofwaterresourcesdecreasesandthetotalenergyconsumptionincreasesbyasmallmargin,andrealizeaproperdevelopmentintotalquantity.

Beforetheendof2005,allthewastesasdischargedbyironandsteelenterprisesshallhavebeenmetthestandardsofthestateandlocalprovisions,andthetotaldischargevolumeofmajorwastesshallhavebeenmetthecontrollingindexasverifiedbythelocalenvironmentaldepartment.

ChapterIIIndustrialDevelopmentPlanning

Thestateshallguidetheironandsteelindustrytodevelopinasound,sustainableandharmoniousmannerthroughthedevelopmentpoliciesandthemid-andlong-termdevelopmentplanningoftheironandsteelindustry.Themid-andlong-termdevelopmentplanningoftheironandsteelindustryshallbeformulatedbytheNationalDevelopmentandReformCommission(hereinafterreferredtotheNDRC)incollaborationwithotherrelevantdepartments.

Anenterprisegroupwithaproductioncapacityofmorethan5milliontonsin2003may,accordingtothestatemid-andlong-termdevelopmentplanningoftheironandsteelindustryandtheoverallplanningofthecitywhereitislocated,formulatetheplanningofitsown,whichshallbeimplementedupontheapprovaloftheStateCouncilortheNDRCaftermakingnecessarycohesionandbalancingefforts.ThespecificconstructionprojectsoftheplanningshallnotberequiredtobesubjecttotheexaminationandapprovalorverificationoftheNDRC,butshallbeorganizedandimplementedbytheenterpriseitselfaftersuchformalitiesforexaminationandapprovalofland,environmentalprotection,securityandcredithavebeenhandled,andshallbereportedtotheNDRCforarchivalfilingaccordingtotherelevantprovisions.

Thedevelopmentofanyotherironandsteelenterpriseshallalsomeettherequirementsofthedevelopmentpoliciesandmid-andlong-termdevelopmentplanningoftheironandsteelindustry.

ChapterIIIAdjustmentofIndustrialLayout

AdjustmentofIndustrialLayoutArticle10Fortheadjustmentofindustriallayout,weshouldtakesuchconditionsasmineralresources,energy,waterresources,trafficandtransportation,environmentalcapacity,marketallocationandoverseasresourcesintoaccountinacomprehensivemanner.Forthelayoutadjustmentoftheironandsteelindustry,weshallnotestablishanynewironandsteelassociatedenterprisealone,independentiron-smeltingorsteel-smeltingfactoryasageneralprinciple.It'

snotencouragedtoestablishanyindependentsteel-rollingfactory.Weshould,onthebasisofthoseestablishedenterprisesthatmeetrelevantconditionsandincombinationwithmergerandrelocation,carryoutreformandexpansioninthoseregionswithsuchcomparativeadvantagesaswaterresources,rawmaterials,transportationandmarketconsumption.Weshouldcombinenewincreaseofproductioncapacitywitheliminationofbackwardproductioncapacityandshallnot,asageneralrule,substantiallyexpandtheproductioncapacity.Intheimportantregionsofenvironmentalprotection,theregionsinseriousshortofwater,theurbandistrictofbigcities,theironandsteelsmeltingandproductioncapacityshallnotbeexpandedanymore.Thoseenterprisesestablishedwithinthedistrictsshall,incombinationoftheadjustmentoforganizationalstructure,equipmentstructureandproductstructure,cutproductionandmovetootherplacessoastomeettherequirementsofenvironmentalprotectionandresourceeconomization.

Thinkingoverthebulkores,energy,resources,waterresources,transportationconditionandthedomesticandoverseasmarketthelarge-scaleironandsteelenterprisesshallbemainlylocatedalongthecoastalareas.Theironandsteelenterprisesininlandregionsshall,incombinationwiththelocalmarketandbulkoreresources,determinetheirproductionaccordingtotheminesavailable,andshallregardthesustainableproductionasthemainfactorforconsiderationotherthanstriveforanyexpansionofproductionscale.

ThereareabundantresourcesofironminesintheAnshan-Benxiregioninnorth-eastChina,whichisneartheproductionbasesofcoalandhasacertainconditionofwaterresources.Accordingtothedevelopmentstrategyofvitalizingtheoldnorth-eastindustrialbase,theironandsteelenterprisesinthisregionshall,accordingtotherequirementsofassociatedreorganizationandestablishingatop-qualityproductionbase,eliminatethebackwardproductioncapacitysoastobuildupalargeenterprisegroupwithinternationalcompetitivecapacity..

AstheregionofNorthChinaisinshortofwaterresourcesandtheproductioncapacityandlevelthereof

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