To seize mining rights overseas helps to ensure Chinese long-term safe alumina production
----Interview with Ms. Shujie Jia
President
Zibo Rundi Aluminum Industry Co., Ltd.
- Zibo Rundi Aluminum Industry Co., Ltd was established in 2004 with registered office located in Zibo City, Shandong Province. It is a comprehensive company whose business scope covers bauxite exploitation, global & domestic trading, product manufacturing, research & development, network platform and financial services. And it is the first Chinese private company entering into Indonesian bauxite mining industry.
- Asian Metal: Rundi Aluminum acquired the special mining license in Guinea in November. What is the special mining license?
- Jia: The mining license consists of special mining license and normal mining license. The special mining license is valid for 25 years, which can be extended for 10 years. The validity for normal mining license is 15 years, and 5 years for extension. In addition, the special mining license is exempted from tax in the first five years.
- Asian Metal: How about your bauxite location and reserves in Guinea?
- Jia: The project, 70km to the port, is located in BOKE area of FRIA, Guinea, covering an area of 836km2, with the total reserves at 1 billion tonnes at least.
- Asian Metal: What is your next plan? When will you start construction and production?
- Jia: In the first phase, we plan to start the mining construction in early 2019 and initiate bauxite production in late 2019, with the annual production capacity of 10 million tonnes. For the second phase, we plan to build an alumina refinery with a total capacity of 3 million tonnes per year. The project is close to the alumina refinery of Rusal in Guinea.
- Asian Metal: How is the current progress for the infrastructure construction including road and port?
- Jia: We have been in touch with a few major engineering companies and will have constructive negotiations soon. We plan to build a 12m-width road and a simple port. We will use barges for transportation with loading capacity at 8,000t. The roughly budget for the infrastructure is around 10 million US dollars.
- Asian Metal: How about the shareholding?
- Jia: 49% for local partner and 51% for us.
- Asian Metal: How about the bauxite specifications?
- Jia: The project has huge reserves and better quality with Al2O3 45%min SiO2%max. We will export bauxite Al2O3 45%min and consume bauxite Al2O3 less than 45%.
- Asian Metal: Have you started the marketing? Besides the Chinese market, will you have other channels?
- Jia: Sure. We have been in touch with a number of Chinese alumina refineries. Besides, we will have the cooperation with an alumina refinery in the Middle East.
- Asian Metal: Rundi Aluminum has been dealing with bauxite for a long time. Would you please briefly introduce the history?
- Jia: From the year of 2006, we started bauxite investigation in Indonesia and have been engaged in the business for around 10 years. In 2014, Indonesia suspended the bauxite export. Currently, we are back to the Indonesian market. In early 2016, we started the bauxite exploration in Guinea.
- Asian Metal: What are the factors encouraging you to develop Guinean bauxite?
- Jia: At first, Indonesia stopped bauxite export in 2014; secondly, we need to find steady bauxite resources and seize mining rights, to ensure Chinese safe alumina production; thirdly, Alcoa and Rusal all have successful mining experience in Guinea and I am confident with the environment; lastly, we found a powerful partner in Guinea.
- Asian Metal: Regarding the Guinean bauxite investment, do you have any successful experience to share with us?
- Jia: It is very important to become a main share holder in mining right. In addition, you need to find a powerful local mining partner to ensure efficiency, safety and steadiness.
