Chalco Inks Agreement for Alumina Supply

BEIJING, July 20 -- China's top aluminum producer Chalco has signed an agreement with Yunnan Coal Industry Group for a long-term cooperation in alumina and coal.

    Under the agreement, Chalco will supply alumina to Yunnan Coal Industry Group and meanwhile buy steam coal from the latter for its branch in southwest China's Guangxi Zhuang Autonomous Region.

    The coal producer meanwhile promised to buy from Chalco most or all of alumina it needs for its electrolytic aluminum production.

    Chalco's Guangxi branch produces 1.8 million tons of alumina per year and meanwhile demands 1.8 million tons of power coal and 500,000 tons of blind coal.

    Yunnan Coal Industry Group, a key enterprise in southwest China's Yunnan Province, focuses on coal and electrolytic aluminum production. It plans to expand its electrolytic aluminum capacity to 400,000 tons per year by 2010.

    (Source: chinamining.org)