Dowa’s Gold and Silver Production to Almost Halve in 1H

Dowa Holdings announced on Friday its nonferrous metal production plan during April-September 2008, along which Dowa’s gold production would decrease by 53.2% to 3.3 tonnes compared with the corresponding period of 2007 and silver production would decrease by 45.8% to 156 tonnes. The gold and silver production will decrease year-on-year due to slower operation of a new recycling furnace at Kosaka smelter, Akita, Japan and lower grade of recycling materials than Canadian ores used at Kosaka.Dowa plans to decrease electrolytic copper production by 7% to 60,762 tonnes during April-September 2008 compared with the same period of 2007 while increase lead production by 20.1% to 6,402 tonnes. The lead production is expected to increase year-on-year thanks to the operation start of the new recycling furnace at Kosaka smelter in addition to the existent lead smelting furnace. The firm plans to increase zinc production by 1.9% to 64,050 tonnes.Dowa produces electrolytic copper not only at Kosaka smelter but Onahama smelter, Fukushima, Japan in which Dowa holds 30% shares. Onahama’s copper production was recently expanded by 40,000 tonnes to 260,000 tonnes per year.Dowa had consigned copper production at above 60,000 tonnes per year to Onahama smelter so far. Dowa will become to take all of expanded 40,000 tonnes in addition to 60,000 tonnes. Copper production at Kosaka smelter is expected to decrease largely due to the operation shift to the new recycling furnace. The output reduction will be covered by the output expansion at Onahama smelter.