Hongqiao negotiates with Indonesian Government to export bauxite with tax exemptions

Leading aluminium producer China Hongqiao Group Ltd. is negotiating with Indonesian government to allow it export bauxite with tax exemptions.

Hongqiao Group, which hopes to export 10-12 million tons of bauxite from Indonesia over the next 5-8 years, has commenced negotiation with the Indonesian government with agreement yet to be reached, ceo Zhang Bo said earlier this month.

Indonesia announced in May 2012 that it would impose an export tariff on 14 types of ore, including bauxite, which is used for producing alumina, the primary raw material of aluminium products.

Hongqiao Group is building an alumina refinery in the Southeast Asian country, and is expected to commence operation in 2015. Phase one of the alumina production line has a designed capacity of 1 million tpy.

The Group made a net profit of 2.8 billion yuan ($454 million) in this year’s first half, a decrease of 1.1% from a year ago, its interim report showed on August 9.