Chalco eliminates backward productivity and strives for further development

Recently the State Council issued the notice of elimination of backward production capacity and nailed down the detailed target task of eliminating backward production capacity involving electricity, coal, steel,iron and other major industries. China forced nine major industries to eliminate backward capacity, which ,to a certain extent,benefit for leading enterprises with outstanding production technology and scale.

Chalco further increased control on upstream resources including bauxite, coal and energy(hydropower and thermal power). Chalco has planned to increased its occupancy volume on domestic bauxite resource and abrod and actively explored business fields related with electrolytic aluminium, including coal(Gansu) and hydropower(Yunan). This strategy will decrease long-term cost. In the future, Chalco will eliminate 100,000-200,000 tons electrolytic aluminum and 1000,000 tons alumina. They will establish new production capacity in some areas with cost advantage and make the cost of electrolytic aluminum and alumina is down to the lowest (50% and 25%).

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