Bauxite from Guinea can compensate for Indonesia's restriction, says Antaike

State backed Chinese research house Antaike stated that, a hypothetical restriction on bauxite shipments from Indonesia as early as next year will have no impact on China's aluminium sector since there is ample alternative supply from Guinea.

Indonesian President Joko Widodo said on Wednesday that the Southeast Asian country may stop permitting exports of bauxite, the primary aluminium ore, starting in 2022 as it seeks to utilise more of its resources domestically.

Bauxite shipments were previously restricted in 2014, when Indonesia was China's largest supplier, only to be allowed to restart in 2017.

“If Indonesia again restricts bauxite exports, Guinea’s bauxite capacity surplus can completely make up for Indonesia’s shortfall,” stated Antaike on Thursday.

It was reported that Chinese-invested bauxite mining plants in the West African country had an annual output capacity of over 100 million tonnes, with practically all of the material being sent to China to be processed into alumina, the ingredient required to create aluminium metal.

Between January and October, China, the world's largest producer of aluminium, purchased more than 91 million tonnes of bauxite. Indonesia was the third-largest provider, behind Guinea and Australia, with a 15percent share.

Guinean imports are forecast to exceed 58 million tonnes this year, with plenty of space for additional growth, according to Antaike.