Guinea’s Dominance as World’s Largest Bauxite Exporter Leaves Aluminum Corp. of China Vulnerable to Risks

Top Aluminum Producer in the World Faces Supply Challenges in Guinea

In recent years, Guinea has emerged as the largest exporter of bauxite in the world, surpassing both Australia and Indonesia. A significant portion of its exports go to China, where the mineral is used for aluminum production. With China’s own bauxite production declining and Indonesia restricting exports, Guinea’s role as a key supplier to China is expected to continue growing.

However, this heavy reliance on Guinea leaves Aluminum Corp. of China Ltd. (Chalco) vulnerable to disruptions that may arise due to local policy changes and strikes. To mitigate these risks, Chalco is exploring opportunities to develop additional mines in the country’s north and collaborate on bauxite projects in other regions.

Despite reporting a 60% increase in net income last year, Chalco 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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