Sat. Jun 22nd, 2024
Top Aluminum Producer in the World Faces Supply Challenges in Guinea

Aluminum Corp. of China Ltd. (Chalco) has acknowledged the potential risks to its bauxite supplies from Guinea, which accounts for 70% of China’s bauxite imports. The company is vulnerable to disruptions that may arise due to local policy changes and strikes in the country. To mitigate these risks, Chalco aims to maintain a steady supply chain from its single mine in Guinea while exploring opportunities to develop additional mines in the country’s north and collaborate on bauxite projects in other regions.

Guinea has emerged as the largest exporter of bauxite in recent years, surpassing Australia and Indonesia. A significant portion of its exports head to China for aluminum production. As China’s own bauxite production declines and Indonesia restricts exports, Guinea’s dependence on China for bauxite imports is expected to increase further. There are rumors that Guinea may follow Indonesia’s lead by requiring foreign companies to establish refineries within the country.

Despite reporting a 60% increase in net income last year, Chalco warned of challenges ahead due to slow global economic growth and rising geopolitical risks. The company highlighted issues in the domestic market such as weak demand and uncertain expectations, stressing the need to navigate these uncertainties while maintaining a stable supply chain for bauxite production.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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