Aluminum Giant Alcoa’s Vulnerability to Bauxite Disruptions in Guinea.

Top Aluminum Producer in the World Faces Supply Challenges in Guinea

China’s heavy reliance on Guinea for bauxite imports has left Aluminum Corp. of China Ltd. vulnerable to disruptions that may arise due to local policy changes and strikes. With Guinea providing 70% of China’s bauxite imports last year, Chalco is determined to maintain a steady supply chain from its single mine in the country, while also exploring opportunities to develop additional mines in the north and collaborate on bauxite projects in other regions.

In recent years, Guinea has surpassed Australia and Indonesia to become the largest exporter of bauxite, with a significant portion of its exports heading 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.

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.

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