MKY mky resources ltd

China has over 100 aluminium smelters with over one third of...

  1. 500 Posts.
    China has over 100 aluminium smelters with over one third of them having a capacity of less than 50,000 metric tonnes. Most of them are uneconomical. Most, if not all, are powered by coal, which is not only expenisve but also very polluting. Chinese bauxite is poor grade - it takes over 2xthe power to smelt chinese grade bauxite as it does Weipa grade. The most profitable smelter is RIO's hydro electricity plant in Canada.

    It is expected the number of chinese smelters will be reduced by a good 60%. The smaller ones,which are deemed to be uneconomical under the government’s criteria, will just be closed down, and this process has already begun. The larger smelters will merge and consolidate, increasing competitiveness through economies of scale.

    To remain profitable and competitive, the Chinese are looking abroad to source their bauxite and to invest in cleaner energy smelters. MKY is well placed to receive those investment $$$$

    The Chinese are not just looking at current demands, they are looking to secure future demand - to do that they need to invest NOW not when demand picks up. If you really want to know what demand will be like loo at this -> http://www.mckinsey.com/mgi/publications/China_Urban_Billion/video/
 
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