Chalco Invests $ 400 Million in Bauxite Mining in Guangxi

Aluminum Corporation Chalco, the largest aluminum producer in China and the second largest in the world, is investing 2.6 billion yuan ($ 400 million) to explore a bauxite deposit at Chongzuo in one of China's bauxite-rich Guangxi region.

The feasibility study of the project was completed in December last year, and now preparatory work is underway in order to start the process of developing the field in June this year. Upon commissioning, the project will produce 2.58 million tonnes of bauxite per year, along with the production of 800,000 tonnes of metallurgical alumina per year.

Chalco owns 10 subsidiaries, 1 research institute and 12 subsidiaries.
All enterprises need new sources of raw materials. Bauxite reserves in China are rapidly depleting, creating the need for the development of new large-scale deposits.

Bauxite deposits in Guangxi are mainly located within the counties of Pingguo, Yongning, Chongzuo and others, which rank fourth in China in terms of proven reserves of bauxite. It is believed that the total bauxite resources in this area could reach 0.8 billion tons or more.

Bauxites in China are usually concentrated in medium-sized deposits. The ore in China is of poor quality and the aluminum production process is laborious and energy intensive. Therefore, Chalco Corporation is constantly exploring deposits in China and strives to extract bauxite and beyond, entering into deals with international mining companies.