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Foreign Bauxite Mining Rights Struggle Is Still In The White Hot Stage
Sep 05, 2017

Foreign bauxite mining rights struggle is still in the white hot stage

With the rapid development of economy, China's aluminum demand is also rising, in recent years, the rapid expansion of the aluminum industry in China of increasing dependence on foreign bauxite, bauxite imports and higher degree of concentration. The rise in demand for aluminum materials has led to an increase in the demand for raw materials in the upstream, the most important of which is the demand for bauxite.

The reserves of bauxite in China compared to other countries, is far from a shortage of supply, coupled with China's bauxite resources distribution is highly concentrated, mainly distributed in Shanxi, Guizhou, Guangxi and Henan four provinces, a total of 90.9%. In addition to the distribution concentrate, China's bauxite deposits are mostly large and medium-sized. According to the investigation data of aluminum melt network, China's reserves of more than 20 million tons of large deposits for a total of 31, its reserves accounted for 49% of total reserves; reserves in 5 million tons of ore deposits: 20 million a total of 83, its reserves accounted for 37% of total reserves, large and medium-sized deposits in total accounted for 86%. However, there are not enough bauxite deposits in China's bauxite, which accounts for only 34% of the total reserves of china. Moreover, the diaspore ore with difficulty in processing and large energy consumption accounts for more than 98% of the total reserves of China, and the cost of alumina smelting using domestic bauxite is higher than that of Bayer process using imported ores. In addition, China's bauxite is a high alumina, high silicon one water bauxite, the quality is poor, subject to mining costs, traffic conditions and environmental pressures and other issues, many mines are still in the stage of exploitation.

Aluminum production in China has been in the forefront of the world, but the local bauxite are less resources and poor quality of the embarrassing situation, in order to alleviate this situation, domestic production enterprises have turned to overseas, in order to win the long-term development, occupy a favorable position in international competition, several well-known enterprises have invested overseas aluminum bauxite mining the right to battle.

In 2014, Indonesia's official statement, will ban all bauxite export trade, when the door is closed when Indonesia bauxite, some aluminum prices in China have turned to Fiji, Guinea, Garner and other countries, the rapid increase in bauxite investment in these countries, and increase imports from these countries. Now at home and abroad for bauxite is still in the stage of intense, especially due to production, inventory and downstream consumption increment speed, alumina and coal prices rose by multiple factors such as resonance, making domestic and foreign enterprises are stepping up the pace of competition of bauxite. Aluminum melt network that now the overall low quality of domestic bauxite under the environment of foreign mining rights becomes increasingly appealing, so more and more enterprises begin to pay attention to foreign bauxite mining rights, according to the current situation, the competition will continue.

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