In recent years, China's aluminum industry has achieved a safe and controllable industrial chain and supply chain by building a "double cycle" development pattern at home and abroad while the supply of bauxite resources and the high-quality development of the alumina industry also face many challenges, said Fan Shunke, deputy secretary of the Party Committee of the China Nonferrous Metals Industry Association, at the recently held 2023 China Bauxite & Alumina market seminar.
Fan Shunke pointed out that China's aluminum industry not only faces the decline of domestic resources and quality but also challenges such as too many source countries of imported bauxite resources and the influence of the policy of exporting countries. Alumina production capacity under construction and planned to be built is large, and serious overcapacity risk appears. The accumulation pressure of red mud continues to increase, which affects the sustainable and healthy development of the alumina industry.
Wang Jun, director of Founder Intermediate Futures Research Institute, believes that with the gradual depletion of domestic bauxite resources, China's bauxite dependence on foreign countries is becoming higher and higher, and the high concentration of resource import is not conducive to the safety of Chinese resource import. Although Chinese powerful enterprises continue to develop bauxite resources overseas, cooperative development has certain limitations. The most fundamental is to realize the diversification of bauxite sources as far as possible.
As a result, Fan put forward five suggestions on how to ensure the supply of bauxite resources and the high-quality development of the alumina industry:
First, we will earnestly implement the Party's 20 National Guidelines and give top priority to high-quality development. By the end of 2022, China's completed alumina production capacity had reached 99.55 million tons, an increase of 10.2% over the previous year, with a capacity utilization rate of 82%. Alumina capacity growth is too high, and the capacity utilization rate is 10% points lower than electrolytic aluminum. The industry should resolutely implement the Party's twenty great spirits, the development of the alumina industry from "quantity" to "quality"
Second, we will attach great importance to ensuring security with resources and fighting a combination of resources. At present, the external dependence on bauxite reaches 57% and shows an increasing trend year by year. We should attach great importance to resource security, strengthen the strategic guarantee of domestic resources, intensify domestic bauxite exploration, strengthen the technology development of high-alumina coal ash and other alternative resources, aluminum resources under coal, and feasibility study on the utilization of low-grade bauxite. At the same time, it is necessary to consolidate the ability of overseas resource development, provide a good development environment for overseas bauxite development, and realize the full utilization of both international and domestic markets and resources.
Third, optimize the layout of the alumina industry and actively explore the construction of alumina production lines overseas. At present, Weiqiao Group and Nanshan Aluminum have successfully built and operated alumina production lines in Indonesia, and Jisco has acquired alumina production lines in Jamaica. China Nonferrous Metal Industry Association actively promotes the joint venture and construction of alumina production lines in Guinea, supports domestic enterprises to "go global", and optimizes the layout of the alumina industry.
Fourth, prudently promote domestic alumina investment and encourage the import of alumina. Given the overheating of alumina investment, China Non-ferrous Metal Industry Association timely reported to the State Development and Reform Commission and the Ministry of Industry and Information Technology, and other departments. The National Development and Reform Commission and the Ministry of Industry and Information Technology attached great importance to this and issued relevant policies at the end of 2022, which set higher requirements for resource matching, energy consumption, and construction of new and expanded alumina projects. The development idea of China's alumina is that "supply does not pursue self-sufficiency". The supply of alumina can be based on two markets, with moderate alumina import.
Fifth, adhere to independent innovation and achieve green industrial development. The alumina industry should conscientiously implement the concept of "clear water and green mountains are gold hills and silver mountains" and the "3060" double carbon target requirements, handle the relationship between development and ecological environment with high standards and strict requirements, adhere to independent innovation, reduce material and energy consumption, do a good job in mine reclamation, promote the comprehensive utilization of red mud, and realize the green development of the whole process of bauxite mining and alumina production.
Guangdong Zhonglian aluminum profile Co., Ltd. is a manufacturer of aluminum profiles with well-equipped testing facilities and a strong technical force. With a wide range, good quality, reasonable prices, and stylish designs, our products are extensively used in the construction industry and other industries. Our products are widely recognized and trusted by users and can meet continuously changing economic and social needs. We welcome new and old customers from all walks of life to contact us for future business relationships and mutual success!
