Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
Emirates Global Aluminum (EGA) said on Thursday it has signed a three-year deal to supply China’s Bosai Group with “several million tonnes” annually of bauxite from Guinea.
Bauxite, the main aluminum ore, is refined into alumina, which is then used to make aluminium metal. China is the world’s biggest aluminum producer and Guinea is its top bauxite supplier.
United Arab Emirates-based EGA, which mines bauxite in West Africa through its Guinea Alumina Corp subsidiary, said in a statement the first shipment to Bosai under the deal was expected to be made in January 2022. The value of the deal was not disclosed.
It noted it had supplied Bosai with more than 1 million tonnes of bauxite this year under short-term agreements.
Bosai, based in southwest China’s Chongqing municipality, has capacity to produce 1.7 million tonnes per year of alumina, as well as 450,000 tonnes of primary aluminum.
China’s demand for imported bauxite is set to increase by around 20% to 132 million tonnes in 2022, state-backed research house Antaike said on Thursday, as companies including Bosai add a total of 6.6 million tonnes of annual alumina capacity.
Some 5.2 million tonnes of new alumina capacity will be put into operation in the first half of next year, Antaike added in a note, estimating that imports will meet 52% of China’s bauxite demand in 2021.
(By Tom Daly; Editing by Sam Holmes)
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