Abundant coal gives Xinjiang aluminium smelters competitive edge
Aluminium smelters in Xinjiang, China’s major aluminium producing region, have been enjoying a competitive edge over their competitors in the rest of the country, thanks to abundant coal reserves there.
Coal reserves in Xinjiang are estimated at 2.19 trillion tonnes, claiming over 40% of national reserves, Huatai Futures said.
Aluminium smelting industry, an industry that relies heavily on power, is developing in full swing in Xinjiang, where aluminium capacity totals 6 million tonnes for now.
Aluminium capacity in Zhundong Economic Development Zone, where China’s biggest coal mine is located, totals 2.4 million tonnes at present. Aluminium smelters in the economic zone are allowed to build captive power plants, with their captive power cost below 0.2 yuan/kwh.
In the long run, the province aims to turn all of its aluminium liquid into aluminium processed products locally.
However, as much as 60% of aluminium liquid in Xinjiang is turned into ingots at present for sale mainly to eastern part of the country, because of underdeveloped aluminium processing industry.
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