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China rolls out new standards for alumina projects, focus on bauxite supply

Thursday, Jul 25, 2013
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China has rolled out new standards for the alumina and aluminum sectors effective July 24, which include setting underlying bauxite supply requirements and minimum capacities for new projects, the Ministry of Industry and Information Technology said on its website late Wednesday.


The new measures are aimed at preventing unlicensed mining and wastage of resources, accelerate the restructuring of the aluminum sector and monitor smelters' expansion.


On the supply of bauxite to existing and new alumina plants, MIIT stipulated that "[investors of] alumina projects using domestic bauxite must have ancillary bauxite mines reaching 85% or more [of total needs], with mining life reaching three decades or more."


For plants using imported bauxite, investors must line up "long-term, reliable bauxite resources, obtain joint venture term bauxite contracts of five years or more, meeting total needs of 60% or more."


As for new alumina projects using aluminum-rich coal fly ash, the new guidelines are: a minimum capacity of 500,000 mt/year, smelters must be located near the coal fly ash production zones and that the supply of coal ash must be ensured for "not less than three decades."


Back in January, MIIT sought feedback from the industry on its proposed guidelines that centered around setting minimum capacities for new projects. At that time, the proposal did not include supply requirements of domestic and imported bauxite for alumina projects.


But in May, the China Nonferrous Metals Industry Association told an industry seminar that China should advance overseas bauxite resources development and strengthen resources protection, outlining growing concerns over the sustainability of domestic supply and the country's growing reliance on imports.


China imported 32.95 million mt of bauxite in the first six months of the year, up 28.5% from a year ago, recent data from the General Administration of Customs showed.


MIIT also on Wednesday, set a minimum capacity of 800,000 mt/year for new alumina projects as proposed.


It also set a minimum capacity of 100,000 mt/year for new recycled aluminum projects and 50,000 mt/year for existing ones.


New refined aluminum smelting projects now must gain approvals from relevant authorities and comply with the state requirements for guaranteed alumina, power, transport supply.


Aluminum companies are encouraged to use hydropower, or implement integrated coal, power and aluminum operations.

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