Henan alumina refinery downs shutters amid danger of potential red-mud landslide

Henan Xiangjiang Wanji Aluminum Co. owned alumina refinery in China's Wanji has been shut down on account of a potential red mud landslide. According to CRU, no probable timeline has been announced yet for reopening the facility.

However, CRU consultant Jackie Wang opines that the 1.4 million-metric-ton-per-annum refinery will require between three and six months to resume operations.

According to the industry sources, the red-mud dam body in the southwest corner of the alumina refinery is not in proper condition. The Xinan town government, which oversees the town where the refinery is located, received a report of same and dispatched a working group to survey the entire complex. The government required the refinery to immediately stop discharging harmful red mud for safety reasons.

Till now, more than three hundred residents have been moved to a safe location, and police force has been stationed at a nearby location so as to expedite rescue operations as and when required.

This is not the first time that a mining complex or alumina refinery operations has been affected severely due to proactive environmental inspections of the government. Many alumina refineries in the province have been affected recently. In addition, some of Henan’s bauxite mines have been administratively closed as well due to lack of permits or failure to complete proper paperwork with the government, which may cause other refineries in Henan to curtail production partially or even entirely.

CRU suggests, the price of alumina will remain range-bound between US$257 and US$261 per metric ton, but a speculated 2.4 million-metric-ton-per-annum decline in supply may lead to a corresponding rise of alumina prices in the local market.

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