• Sat. May 25th, 2024

Chalco Cautions on Bauxite Risks from Guinea Amidst Growing Dependence on Country’s Bauxite Supplies

BySamantha Nguyen

Mar 28, 2024
Top Aluminum Producer in the World Faces Supply Risk of Raw Materials from Guinea

Aluminum Corp. of China Ltd. (Chalco) has expressed concerns about the risks to its bauxite supplies from Guinea, a country that provided 70% of China’s bauxite imports last year. The company acknowledged that its bauxite mine in Guinea could face supply fluctuations due to local policy changes and frequent strikes. To mitigate these risks, Chalco plans to ensure supply continuity from its single mine in Guinea while also exploring opportunities to develop additional mines in the country’s north. Additionally, the company aims to collaborate on bauxite projects in other regions and enhance domestic supplies.

Guinea has emerged as the largest bauxite exporter, surpassing Australia and Indonesia in the 2010s. Most of its bauxite is shipped to China, where it is processed into alumina and aluminum metal. With China’s own bauxite production declining and Indonesia reducing exports, Guinea is becoming an increasingly crucial supplier for China. Bloomberg Intelligence analyst Michelle Leung warned that China may eventually rely on Guinea for 90% of its bauxite imports. She suggested that Guinea could follow Indonesia’s lead by requiring foreign companies to establish refineries locally. Despite Chalco’s net income rising 60% last year, the company remains cautious due to uncertain global economic conditions and geopolitical risks impacting commodity markets. Challenges such as insufficient demand and weak expectations persist in the domestic market setting.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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