China's Guizhou province attracts aluminium producers with its bauxite deposits and industry friendly policies

According to industry experts Southwest China's Guizhou province is becoming the preferred destination for aluminium producers because of industry friendly policies and availability of bauxite. The current bases in central and eastern China are slowly shifting to other destinations because of depleting raw materials and strict environmental rules.

"Guizhou's abundant bauxite resources have given the province an edge in developing aluminum production. We are also working to bolster a better business environment for investors with supportive policies and better infrastructure. The goal is to make Guizhou a national hub for aluminum production," said Ma Lei, head of the Guizhou Investment Promotion Bureau, on behalf of vice-governor Lu Yongzheng during an industry forum.

Guizhou has about 162 million tonnes of bauxite deposits, about 18 per cent of the country's total and ranking fourth after Shanxi, Henan and the Guangxi Zhuang autonomous region. The South-western Chinese province has a number of aluminium plants in the capital city of Guiyang, Zunyi city, and the Qianxinan Bouyei and Miao autonomous prefecture.

The industry is looking at Guizhou as a potential hub as a number of bauxite mines have been closed down in Central China's Henan and North China's Shanxi provinces for environmental reforms.

"China's demand for bauxite continues to grow but the supply fell. That gives other bauxite-rich areas, mostly in Southwest China like Guizhou, an opportunity for development in aluminium production," said Cheng Wenchao, an analyst from consulting firm Aladdiny which is specialized in the bauxite industry.

China imports a large volume of bauxite from Australia and Guinea to feed its growing alumina refineries which produced 71.8 million tonnes of alumina in 2018, from just 7 million tonnes in 2004. Import is growing due to depleting reserves and higher prices in the domestic market.

According to Aladdiny data, total bauxite imports by mainland companies are expected to reach 18 million tonnes in 2019 and 140 million tonnes by 2025.

Guizhou province has enormous growth potential under such market conditions. Ma said Guizhou province will initiate efforts to boost manufacturing sector and high-end application sector to add value to the aluminium produced and grow in the supply chain.