The storage of lead zinc ore in China takes the second place in the world and has advantages. Lead zinc ore has 700 places of production and they mainly include: Xilin of Heilongjiang Province; Hongtoushan and Shanchengzi of Liaoning Province; Caijiayingzi of Hebei Province; Baiyinnuo, Dongshengmiao, Jiashengpan and Tanyaokou of Inner Mongolia Autonsomous Region; Xicheng (changba) of Gansu Province; Qiandongshan of Shanxi Province; Xitieshan of Qinghai Province; Shuikoushan and Huangshaping of Hunan Province; Fankou of Guangdong Province; Wubu of Zhejiang Province; Lengshuikeng of Jiangxi Province; Qixiashan of jiangsu Province; Dachang of Guangxi Zhuang Nationality Autonsomous Region; Lanping, Huize and doulong of Yunnan Province; Daliangzi and Xiacun of Sichuan Province. super large lead zinc deposit has been found in Jinding of Yunnan Province.
China produced just over 1.58 Mt of refined lead in 2003, making it one of the world's leading producers. China zinc production is set to decline. Lead concentrate production increased by 15% to 613,500 t. Zinc concentrate production in 2003 increased by 15% to 1.69 Mt, refined zinc production increased by 10% to 2.3 Mt.
In the first half of of 2003 prices of lead were weak compared to the second half which had effect on Chinese lead exports which rose 11% to 436,000 t compared to imports of refined lead which decreased by 19% to 25,000 whilst concentrate lead imports increased by 75% to 679,000 t. Seven enterprises each produced in excess of 50,000 t and their total production was 637,000 t, 40% of domestic production.
Companies posting the largest increases in zinc production were mainly newlt established and privately owned. Eleven enterprises each produced in excess of 50 000 t with a combined output of 1.24 Mt, 54% of domestic production. Consumption of zinc in 2003 was estimated at 2 Mt, 11% higher than 2002,
The Baiyin Non-Ferrous Metals Company (BNMC) operates the Xiaotieshan polymetallic mine located in the Baiyin mineral district. Teck Cominco and Minco Mining are currently evaluating the depth extensions to the underground mine. According to the BNMC, remaining resources at Xiaotieshan are estimated at 10.7 Mt grading 1.1% copper, 3.3% lead, 5.1% zinc, 2.1 g/t gold and 100 g/t silver.
In 2005 China's demand for galvanised steel had resulted in a 12,9% increase in demand for refined zinc. The rising demand for galvanised steel and refined zinc is largely due to the current increase in urbanisation of the country's population, causing immense developments in infrastructure.