Another overseas enterprise enters China's imported bauxite market-EGA and Xinfa sign a five-year bauxite supply contract

SMM, Nov. 25 / PRNewswire-FirstCall-Asianet /-UAE Aluminium (EGA, Emirates Global Aluminium) said in a statement on its website today that it has signed a five-year bauxite supply contract with Xinfa Group, which will be supplied by (GAC, Guinea Alumina Corporation), a Guinean alumina company owned by EGA.

Xinfa Group is one of the largest alumina producers in China. Based on the contract, EGA will supply Xinfa Group with millions of tons of bauxite annually starting in January 2020.

Last July, EGA signed a long bauxite order with India's Vedanta Aluminium (Vedanta), supplied by GAC.

EGA's GAC began exporting bauxite in August, and EGA invested nearly $1.4 billion in GAC, the largest new investment in Guinea in nearly 40 years.

Zhang Gang, chairman of Xinfa, said, "as China's main consumer of imported bauxite, the signing of a long-term contract between Xinfa and EGA bauxite will provide a stable guarantee for our bauxite sources. We look forward to friendly cooperation with EGA to achieve a win-win strategy. "

Abdulla Kalban, General Manager and Chief Executive Officer of EGA, said, "GAC is a new international resource supply service for high-grade bauxite, and we carry out reliable production and use the largest dry bulk carriers for cost-effective transportation. Our strategy of sending GAC bauxite to two major international markets, China and India, has been very successful and we are pleased that Xinfa is now a customer of ours. "

Bauxite is the ore source of primary aluminum, which can be refined into alumina and further smelted into electrolytic aluminum. EGA had previously provided bauxite samples to a number of potential customers in 2017.

EGA has established transit facilities in Guinea so that its bauxite can be transported by Cape of good Hope bulk carriers, reducing transport costs per tonne.

Brief comment on SMM:

-on alumina, EGA officially disclosed that its Al Taweelah alumina plant has an annual capacity of 2 million tons, which can fully meet 40% of EGA's alumina demand for electrolytic aluminum production, and will consume 5 million tons of bauxite annually, which is provided by guinea bauxite company (Compagnie des Bauxites de Guin é e). According to SMM research, Al Taweelah expects production to reach 110 to 1.2 million tons by the end of this year.

EGA original text link: https://www.ega.ae/en/media-releases/2019/november/xinfa-deal/