Aluminum Corporation of China first half net profit of more than 3.4 billion yuan, set up bauxite resources task force: accelerate resource acquisition

August 22, China’s leading non-ferrous metal Aluminum Corporation of China Limited (hereinafter referred to as “Aluminum Corporation of China”, 601600) released 2023 half-year report, the company’s first-half operating income of 134.063 billion yuan, compared with the same period of the previous year (year-on-year) decreased by 15.66%; attributable to shareholders of the listed company Net profit was 3.417 billion yuan, a decrease of 23.32% year-on-year.

As of the end of June 2023, Aluminum Corporation of China’s asset-liability ratio was 55.61%, down 3 percentage points from the beginning of the year. In terms of major products, the output of metallurgical alumina, electrolytic aluminum and coal in the first half of the year was 8.23 million tons, 3.06 million tons and 6.22 million tons, respectively, a year-on-year decrease of 9.05%, a decrease of 5.57% and an increase of 11.67%; and power generation capacity of 17.8 billion kilowatt-hours, a decrease of 4.81%.

Regarding the decline in operating results, Alcoa said it was mainly affected by the year-on-year decline in primary aluminum and alumina market prices. From the bauxite market point of view, in recent years, domestic alumina enterprises are increasingly using imported ores, and the degree of external dependence is increasing year by year. Since this year, Indonesia has gradually tightened bauxite exports, and in June began to implement the ban on bauxite, but China’s imports from Guinea, Brazil, Ghana and other regions of the volume of bauxite increased year-on-year, to a certain extent, to make up for the gap in the reduction of imports from Indonesia, especially from Guinea’s imports of bauxite amounted to more than 70% of the total amount of imports.

Alumina market, the first half of this year, both domestic and foreign prices as a whole showed a trend of first up and then down. 2023 first half, the average spot price of domestic alumina was 2,896 yuan / ton, a year-on-year decline of 3.7%. In terms of electrolytic aluminum, the domestic aluminum price is less volatile compared to the international aluminum price, the overall narrow fluctuations around the range of 17400-19500 yuan / ton, but compared with the same period last year, the center of gravity of the price is still shifted sharply downward. On the first half of this year’s key projects, the report mentioned that the company set up a bauxite resources task force to accelerate the acquisition of domestic and foreign resources, the first half of the new domestic bauxite resources of 21 million tons. Key projects have made breakthroughs, Inner Mongolia Huayun three 420,000 tons of electrolytic aluminum project started construction, Guangxi Huasheng two 2 million tons of alumina project is advancing smoothly, Silver Star Energy Ningdong 250MW photovoltaic project grid-connected power generation, Helan Mountain 91.8MW wind turbine renovation project approved to start, Alcoa Shandong, Shanxi Zhongrun and other five distributed photovoltaic power generation projects to start construction. In addition, Alcoa has accelerated the development of products to medium and high end, established 12 new fine alumina projects, started the construction of lithium battery diaphragm materials and micronized alumina hydroxide projects; 120,000 tons of pre-roasted anodes of Chalco-Carbon Baotou have been completed and put into production, and 95,000 tons of carbon of Fushun Aluminum Industry have been ignited and started.

Aluminum Corporation of China is the leading enterprise in China’s non-ferrous metal industry, with its comprehensive strength ranked at the forefront of the global aluminum industry, and is also the only large-scale aluminum production and operation enterprise in China’s aluminum industry that integrates the mining of bauxite, coal and other resources, the production and sales of alumina, primary aluminum and aluminum alloy products, technology research and development, international trade, the logistics industry, thermal power and new energy power generation.

The company’s development goal is to become a world-class aluminum company with global competitiveness. Its alumina production capacity ranks first in the world, primary aluminum production capacity is second in the world, carbon production capacity is first in the world, and fine alumina production capacity is first in the world. It is worth noting that China is a big country in the aluminum industry, ranking first in the world in terms of production and consumption for 21 consecutive years.