3　Selection of Plant Location

3.0.1　The plant site selection shall be in accordance with the industrial layout specified in the Iron and Steel Industry Developing Policy of the nation and in compliance with the procedures set out by the state.

3.0.2　During the plant site selection，extensive investigation and research as well as multi-option technoeconomic comparsion shall be made for the following items:

1　Raw materials and fuels，their supply sources and finished product whereabouts of the project to be built.

2　Traffic and transportation condition.

3　Natural（incl.topographical，geological，hydrological，meteorological，etc.）condition.

4　Energy supply（incl.water，electricity，wind，gas/air，etc.）condition.

5　Current situation of environment.

6　Situation of flood and water-logging control.

7　Situation of farmland water conservancy.

8　Situation of existing facilities.

9　Situation of city plan.

10　Situation of overall plan for land use.

11　Condition of the land for storage and comprehensive utilization of waste materials.

12　Living conditions of the staff.

13　Social collaboration and construction expenses.

3.0.3　The plant site shall enjoy smooth and economic traffic and transportation conditions.The connection to external railway and road shall be short and convenient，demanding small quantity of works.The plant site near river and sea shall take advantage of the water transportation to the maximum extent and such a plant site should be located near the pertinent port.

3.0.4　Techno-economic verification shall be conducted for such important factors which may affect the plant site selection as transport distance，transportation volume，transportation mode，and transportation condition as well as transportation expense between the plant site and the raw material/fuel sources and the major sale destinations of finished product.

3.0.5　The plant site selection shall be in accordance with the city（town）and industrial zone plan of the area where the plant is to be located and in full consideration of such conditions as for mutual reliance，mutual collaboration and coordinated development with city（town），industrial zone and the related enterprises in the said area.

3.0.6　During the plant site selection，attention shall be paid to rationally using the land resources，making full use of the construction land，and occupying no farmland or occupying as little farmland as possible under the guidance of the overall plan for land use of the area where the plant is to be located.Economic land use shall be promoted to improve the utilization rate of land.Land use index of the iron and steel enterprise should meet the requirements of Article 5.1.15 herein.

3.0.7　Local availability of construction materials shall be one of the considerations taken during the plant site selection.

3.0.8　The plant site should not occupy the place of the existing facilities such as village，railway，road，arterial drainage and engineering pipeline，etc.

3.0.9　The plant site shall be kept away from the area with complicated natural landform and big natural gradient，if possible.It shall be avoided to select the basin area，water logging and low lying area，or air stagnation area as plant site.

3.0.10　The plant site shall enjoy good engineering geological conditions and hydrogeological condtions.

3.0.11　The plant site shall have adequate and reliable water source and electricity source that could meet both the production requirement and the future development demand.Pipelines or powerlines for connecting the water source and electricity source to the plant site shall be as short as possible.

3.0.12　The plant site shall be located at windward side of the city（town）and residential area in terms of the wind direction of least frequency in normal year.The sanitary safety distance between the plant site and the residential area shall meet the requirements of Article 4.2.1 herein.

3.0.13　The plant site selection for extension or renovation projects shall be made in line with the development plan of the enterprise and in such a principle that the enterprise's development is not affected，the existing production is not affected whereever possible and the existing facilities are reused as much as possible.

3.0.14　Selecting the following locations or areas as the plant site is strictly prohibited:

1　Seismic zone with seismogenic fault and seismic precautionary intensity of class 9 and above；and areas with tsunami or lake surge hazards.

2　Locations vulnerable to such direct hazards as debris flow，landslide，drifting sand or karst cave，etc.

3　Locations within the boundary of blasting dangerous area.

4　Locations within surface subsidence limitation.

5　Locations of which safety cannot be ensured in case of dam/levee break.

6　Areas inundated by flood，tide or waterlogging；reliable precautions must be taken when it comes to be unavoidable.

7　Locations within the airport clearance protection areas designated by the state；locations that affect the radar navigation，the important astronomical/meteorological/seismic observation as well as the military facilities.

8　Residential area，cultural and eductation area，water source protection area，scenic spot and place of historical interest，tourist resort，hotspring，sanitarium area，nature reserve and other areas which require special protection，either designated by the State Council，compentent authorities concerned under the State Council，the people's government of province，Autonomous Region or municipality or mapped out in the city plan.

9　Locations at upper reach of the potable water source.

10　Areas with bad geological conditions，such as area with serious gravity collapsible loess，area with recently-formed thick loess，and area with highly compressive saturated loess.

11　Areas with mineral despoits of exploitation value.