Chalco signs agreement for alumina supply

China's top aluminum producer Chalco has inked an agreement with Yunnan Coal Industry Group for a long-term cooperation in alumina and coal.

According to the agreement, Chalco will supply alumina to Yunnan Coal Industry Group and meanwhile purchase steam coal from the latter for its branch in southwest China's Guangxi Zhuang Autonomous Region.

The coal producer meanwhile made a promise to buy from Chalco most or all of alumina it needs for its electrolytic aluminum production.

Chalco's Guangxi branch produces 1.8mln tons of alumina per year and meanwhile demands 1.8mln tons of power coal and 500,000 tons of blind coal.

Yunnan Coal Industry Group, a key enterprise in southwest China's Yunnan Province, focuses on coal and electrolytic aluminum production. It plans to expand its electrolytic aluminum capacity to 400,000 tons per year by 2010.

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