China’s energy curbs blunt demand for bauxite after Guinea coup stokes supply fears

Name: What is China doing about climate change?
Uploaded: 2021-09-24T20:30:20.000Z
Duration: 6 min 55 s
Description: What is China doing about climate change?

The military takeover on September 5 has so far caused no major disruptions to the global supply of bauxite, according to Clarksons Research

China’s efforts to rein in power consumption have dampened demand for the mineral, a key ingredient in the energy-intensive production of aluminium

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A military coup in Guinea, a major bauxite producer, stoked fears about supply chain disruptions for the mineral earlier this month. Photo: EPA-EFE

Ji Siqi

Published: 4:30am, 25 Sep 2021Updated: 4:56am, 25 Sep 2021

Business as usual at Guinea’s bauxite mines following a coup early this month and China’s campaign to reduce domestic energy consumption have mitigated concerns about supply shortages of the mineral – a key ingredient in aluminium, analysts say.

The tonnage of ships calling at Guinean ports for bauxite exports remained stable in the first three weeks of September, dropping only two per cent compared to the same period in August, said a report published by Clarksons Research on Thursday.

The military takeover on September 5, which led to the ousting and arrest of president Alpha Conde, has so far caused no disruptions to local bauxite mining and transport, according to the report.

Since taking power, coup leader Mamady Doumbouya has reassured foreign investors the military government will uphold mining agreements and maritime borders would remain open for exports.

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What is China doing about climate change?

Still, aluminium prices surged to a 10-year high following the coup, and raised questions about how China would plug the gap in imports if international bauxite supply was disrupted.

China, which produced about 57 per cent of all alumina globally last year, is the world’s biggest importer of bauxite. Some 60 per cent of its consumption comes from overseas sources and rising imports in recent years have come mainly from Guinea, according to Chinese online pricing and intelligence service Mysteel.