Ningxia Darong Chemicals & Metallurgy Company, Ltd.

completed

Darong Chemicals and Metallurgy Company Ltd is located in Dawukou District, Shizuishan City of Ningxia Hui Autonomous Region, approximately 840 km west of Beijing. Darong occupies a land area of 530,000 m2, and has 1,600 employees. The company, started producing calcium carbide in the early 1990, and now is an integrated calcium carbide, calcium cyananmide, dicyandiamide and hydrogen cyanamide producer. The project (which is a category B) consists of the following components: - an expansion of calcium cyanamide production from 50,000 tons per annum (tpa) to 150,000 tpa; and - the environmental improvement of an existing calcium carbide furnace to reduce air emissions and recover waste heat to generate steam needed for the expansion; and - expansion of dicyandiamide production from 8,000 to 25,000 tpa. The project was originally approved by the IFC Board of Directors in October 2001 but was not disbursed for various reasons. It is now intended to proceed with the project, albeit in a slightly modified scope. Existing environmental studies will be updated and this Summary will be re-disclosed as outlined below.