Chalco hit by export restriction and lower price
Wednesday, January 30 2013 - 03:49 AM WIB
Chalco Hong Kong Limited, a wholly owned subsidiary of Aluminum Corporation of China Ltd (Chalco), reported production of alumina declined by approximately 1.7 million tons in 2012 due mostly to a restriction on bauxite export.
The restriction on the bauxite export imposed by the Indonesian government lowered the company's production of alumina by approximately 1.7 million tons, it said in a report.
Bauxite is the ore from which alumina is produced.
The lower production is also exacerbated by a 7 percent decrease in aluminum prices in the year from a year earlier, resulting in 4 percent increase in the Chalco's cost of alumina production.
In 2013, the company said it will continue to lower the production cost through an upward adjustment to the volume of the self-developed mines and self-generated power, technology improvement as well as central procurement.
Editing by Dadan Wijaksana