• Thu. Jun 13th, 2024

Guinea: China’s Key Aluminum supplier and Bauxite Exporter in the face of supply chain risks

BySamantha Johnson

Mar 28, 2024
Top Aluminum Producer in the World Faces Supply Challenges in Guinea

Guinea has become the largest exporter of bauxite in recent years, surpassing Australia and Indonesia. A significant portion of its exports head to China for aluminum production. As China’s own bauxite production has declined and Indonesia has restricted exports, China’s dependence on Guinea for bauxite imports is expected to increase. There is speculation that Guinea may mirror Indonesia’s policy of requiring foreign companies to establish refineries within the country.

Aluminum Corp. of China Ltd. (Chalco) has identified potential risks to its bauxite supplies from Guinea, which provided 70% of China’s bauxite imports last year. This heavy reliance on Guinea leaves Chalco vulnerable to disruptions that may arise due to local policy changes and strikes. The company aims to maintain a steady supply chain from its single mine in Guinea, while also exploring opportunities to develop additional mines in the country’s north and collaborate on bauxite projects in other regions.

Chalco reported a 60% increase in net income last year, but warned of challenges ahead due to slow global economic growth and rising geopolitical risks. The company highlighted issues in the domestic market such as weak demand and uncertain expectations, emphasizing the need to navigate these uncertainties while maintaining a stable supply chain for bauxite production.

By Samantha Johnson

As a dedicated content writer at newsanguinely.com, I weave words into compelling stories that captivate and inform our readers. With a passion for storytelling and a keen eye for detail, I craft engaging articles that shed light on the latest news and trends. When I'm not typing away at my keyboard, you can find me exploring new ideas, researching diverse topics, and striving to deliver content that resonates with our audience. Join me on this journey as we uncover the stories that matter most.

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