China eyes overseas alumina projects to access bauxite reserves

China's rising reliance on bauxite, the primary raw material for alumina production, has prompted the world's largest miner to seek alumina refineries worldwide, particularly emphasising crucial supplier Indonesia following an export embargo.

According to analysts and AL Circle's industry-focused report Global Aluminium Industry Outlook 2023, China's reliance on imported bauxite has reached 57 per cent, and this figure is projected to rise further. Protectionist policies of some of the bauxite-producing countries, along with the quality depletion of the bauxite reserves in China, will drive the reliance on bauxite from Guinea.

As China ramps up its decarbonization efforts, the country must also maintain its enormous industries critical to its economy, including aluminium.

According to the analysts, building alumina projects outside China will mitigate hazards associated with excessive concentrations of imported bauxite and reduce local red mud output as the country moves to a lower carbon economy.

AL Circle news has reported that export restrictions have resulted from efforts to safeguard resources, with Indonesia banning bauxite export from June 10, 2023.

China has chosen Indonesia as the best location to develop alumina projects since it is predicted to have the most remarkable growth in the alumina sector internationally in the upcoming years.

Unveiling the bauxite powerhouses: The top 10 producers of bauxite in 2022, an article published by AL Circle reveals that Indonesia is the sixth-largest bauxite producer and has the fifth-largest reserves. In addition, Indonesia has abundant coal resources, which are necessary for power generation to facilitate energy to aluminium smelters.

Aside from having abundant reserves, Indonesia has been a superior supplier of bauxite to China than Guinea in recent years due to its better infrastructure and shorter haul distance.