BEIJING - Chinese Ministry of Industry and Information Technology (MIIT) on Thursday published strict conditions for companies wanting to enter the magnesium industry, setting requirements on the layout, production capacity and environmental protection for the industry.

The move was to "accelerate industry restructuring, enhance environmental protection, regulate investment and prevent redundant construction", MIIT said in a statement on its website.

Related readings:  4th Magnesium Expo to be held in Shenyang in September  US to keep antidumping duty on China's magnesium

Existing magnesium refineries must raise their annual production capacity to at least 15,000 tonnes if they wish to continue legal operations.

A magnesium refinery must raise its production capacity to at least 20,000 tonnes per year if it wishes to apply for renovation or expansion.

Any new magnesium or magnesium alloy investment project must boast an annual production capacity of at least 50,000 tonnes, according to MIIT.

"We encourage large and medium magnesium refining enterprises to merge, or acquire, with small plants," said the statement.

New magnesium refining projects will be prohibited in areas 1 km from drinking water sources, basic farmland protection areas, natural reserves, scenic spots and other areas that require strict environmental quality, it said.

The MIIT requirements also cover the access conditions of the magnesium industry in mining, technology, machinery, product quality and energy utilization.