ERG starts shipping alumina from Kazakhstan to Xinjiang region of China: Sources said

Eurasian Resources Group (ERG) has reportedly started shipping alumina from Kazakhstan into northwest China’s Xinjiang region. The news came after four people with knowledge of the matter said last week.

However, purchases of alumina from Kazakhstan are a rare occurrence in China. According to customs data, China did not import any alumina from the Central Asian country in 2017 or 2018.

As per the Reuters report, over 10,000 tonnes of alumina arrived at Xinjiang Tianlong Mining Co, having travelled by rail via China’s border city of Alashankou. Xinjiang Tianlong Mining Co. has a 250,000 tonnes per year aluminium smelting capacity.

One of the four people said that initially, Tianlong had signed a deal to take a total of 12,000 tonnes of alumina from Astana-based ERG. The source also said: “If it can be used well, perhaps a one-year contract will be signed.” 

Tianlong and ERG, however, did not immediately respond to requests for comment. 

Eurasian Resources Group produces 1.5 million tonnes of alumina every year in Kazakhstan. Last year after the United States said it would slap sanctions on Rusal, ERG stepped up its search for new customers. Rusal used to take two-thirds of ERG’s alumina, another of the sources said.

The volumes recently sent to China were part of the supply previously earmarked for Rusal, he added.

The remainder of ERG’s alumina goes to its own smelter in the city of Pavlodar in northeast Kazakhstan.