Bloomberg reported that Aluminium Corporation of China Limited is seeking to tap bauxite resources and build processing plants abroad after Indonesia the largest supplier to China, curbed exports.
Mr Luo Jianchuan president of Chalca said that"Tthe company plans to build an alumina facility with a capacity of 1 million tonnes a year in Indonesia as the first phase. We're still doing a feasibility study and the earliest date for completion of the first phase is 2014 to 2015. Bosai Minerals Group Company is also considering an investment.
Data from the customs department showed that Indonesia banned exports of some mineral ores starting in May, except for mining business license holders that plan to build local processing plants. Those shipments are subject to a 20% tax. Indonesia supplied 80% of China's total bauxite imports in 2011.
Chalco said that in August it signed an agreement with PT Indonusa Dwitama to form JV and develop the Southeast Asian nation's biggest bauxite mine. The company has a similar plan in Laos.
Mr Yang Yunbo director of the light metals department at the China Nonferrous Metals Industry Association said that "The current holdings of bauxite resources abroad by Chinese companies are far from enough to meet demand. Bauxite will be a hurdle to sustainable development in the industry."
Data from the General Administration of Customs showed that Chinese imports of bauxite from Indonesia tumbled 55% in October from a year ago to 1.05 million tonnes while total imports of the ore fell 30% to 2.14 million tonnes. Bauxite is used to make alumina, which in turn produces aluminium used in everything from window frames to beverage cans.
Mr Liu Jianhong VP of Chalco said that "Bosai Minerals, a privately owned integrated aluminium producer, may also invest USD 1 billion in an alumina project with an annual production capacity of 2 million tonnes as well as power plants and port facilities. Because the investment is big, we're cautious in pushing forward. There are uncertainties regarding Indonesia's policies. If they change again to allow exports, then the project will be a problem for us."
Mr Liu said that Bosai has bauxite mines in Ghana and Guyana, and plans to ship 2 million tonnes of the ore from Ghana and 1.5 million tonnes to 2 million tonnes from Guyana to China each year. Our raw material supplies can be secured in the medium to long term. So apart from meeting our own demand, we can sell to other companies in China.
The company has an annual production capacity of 800,000 tonnes of alumina and 200,000 tonnes of aluminium, and plans to have 3 million tonnes of capacity for alumina and 1.25 million tonnes for aluminium by 2015. Output of aluminium in China, the largest producer and user, climbed to a record 1.75 million tonnes in August and gained 11% from a year ago to 16.5 million tonnes in January to October.
