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

Published: Nov 25, 2019 19:28

Source: Www.smmadmin.cn

Save

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/

Bauxite import and export alumina

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

19 hours ago

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

19 hours ago

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

19 hours ago

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

19 hours ago