Chalco’s Bauxite Vulnerabilities in Guinea Amidst Economic and Geopolitical Risks

Top Aluminum Producer in the World Faces Supply Challenges in Guinea

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

In recent years, Guinea has emerged as the largest exporter of bauxite, 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. There are rumors that Guinea may follow in Indonesia’s footsteps and require 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, emphasizing the need to navigate these uncertainties while maintaining a stable supply chain for bauxite production.

As China’s dependence on Guinea for bauxite imports continues to grow, Aluminum Corp. of China Ltd. (Chalco) has identified potential risks to its bauxite supplies from the country. With 70% of China’s bauxite imports coming from Guinea last year, Chalco is vulnerable to disruptions that may arise due to local policy changes and strikes. To…

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