Chinese bauxite grade is deteriorating and Turkish diasporic bauxite moves into China
----Interview with Mr. Mehmet, Managing Partner of CIM Madencilik Sanayi Ve Tic A.S.
CIM Mining was established in 2015 with partnership of Alize Group and Graphite Mining. Both groups are the leaders in the their sectors. By combining power of both companies, CIM Mining focuses on bauxite production in Turkey. We are using the production expertise of 25 years that Graphite Mining has in this business.
Asian Metal: According to China Customs, China imported around 48.7 million tonnes of bauxite from January to November in 2015. China did not import bauxite from Turkey before, and Chinese consumers are not familiar with Turkish bauxite. What do you think of the differences between bauxite from Turkey and other origins like Malaysia and Australia? Do you think Chinese alumina refineries will be able to use Turkish bauxite?
Mehmet: Turkish bauxite is diasporic and is different from usual gibbsite bauxite of Malaysia and Australia. This bauxite can be used only in high temperature alumina refineries of China using diasporic bauxite. As the quality of Turkish diasporic bauxite is better than Chinese ore of similar mineralogy, we think this can be exported to China.
Asian Metal: Are you a bauxite owner or trader? Do you have bauxite production or export before?
Mehmet: We are mine owner and presently exporting bauxite to cement industry.
Asian Metal: What are the identified reserves of your bauxite mine? And how about the quality and production capacity?
Mehmet: You can check details by the following table:
Al2O3 %min
SiO2 %max
Resources (MT)
52.80
5
1350
49.50
8
2380
42
11
7600
Asian Metal: The freight cost from Turkey to China will be higher. Compared with Malaysian and Australian bauxite, what is the challenge of Turkish bauxite?
Mehmet: Yes, freight cost from Turkey will be higher than that from Malaysia, however, it will be comparable to Australia.
There is one big trial shipment done from Turkey to China 55,000 MT in December 2015. One will be in February 2016, and it is going to be 55,000 MT.
Asian Metal: From December 2015, prices of Australian, Malaysian and Indian bauxite started going down. And Chinese alumina refineries cut production capacity by 6.4 million tonnes in late 2015. How do you think of the price of Turkish bauxite?
Mehmet: The price of Turkish bauxite C&F Chinese port will be about US$ 45-49 per ton depending on Quality.
Asian Metal: Given the current sluggish market, do you think Chinese demand will recover in 2016? What is your plan on Chinese market? Will you consider expanding production?
Mehmet: Yes it is expected that Chinese demand for imported diasporic bauxite may start as the quality of Chinese diasporic bauxite is deteriorating. If China starts importing Turkish bauxite, we will expand our production.
Asian Metal: Will you sell bauxite directly to Chinese consumers or through traders？ Is there export tax on bauxite in Turkey?
Mehmet: We are open to export bauxite to China through traders or directly. There is no export tax on bauxite in Turkey.
