Chalco is talking with Aurukun in northeast Australia on acquiring the license for tapping a local aluminum bauxite mine at the end of March, according to Chalco. Besides, Chalco is expected to complete the feasibility report on exploration of Dak Nong aluminum bauxite mine and an alumina project in Vietnam in August and get final official approval from the two sides at the end of 2007. Moreover, Chalco has made preliminary preparation for probing aluminum bauxite resources in Guinea and has submitted its exploration scheme to local authority.

All the efforts are made to help Chalco extend its production lines to the upstream sector as Chalco’s alumina business is seeing unoptimistic prospect in 2007 and may meet with a string of challenges in the future, said Xiao Yaqing, chairman and CEO of Chalco. In order to maintain its leading position in China’s alumina market, Chalco sharply slashed alumina price by 58 percent in the second half of 2006 to combat against the soaring alumina output release.

Aluminum bauxite is the main material for making alumina. Along with the increasing number of alumina smelters in China, the demand for aluminum bauxite sets to increase considerably. The alumina output soared 61 percent last year but the domestic demand only rose 14.3 percent to 19 million tons.