Behind the nationwide call for support in the transformation and upgrading of Shanxi's aluminum industry, just how strong is Shanxi's aluminum industry?

Introduction:With the conclusion of the national“Two Sessions”, and the release of a series of government policies, Shanxi's aluminum industry, particularly the Lvliang aluminum industry, has ushered in another period of vigorous development.Riding the spring breeze of the times, standing on the vast expanse of the yellow earth, absorbing the rich spiritual nourishment accumulated over more than 30 years of hard work, and possessing4000the tremendous power of many Senze people united, we, the people of Senze, are forging our own path of transformation and upgrading, with an incredibly broad stage for development, incredibly profound cultural heritage, and incredibly strong driving force for progress. Let us be of one mind and work together, work diligently and live honestly, succeed in our posts, take root in Senze to start businesses,integrate resources, manpower, and material resources, and strive to achieve a bright future for Senze! I hope everyone will read this carefully and grasp the general trend of development in the aluminum industry.

Recently, the Shanxi Daily disclosed a joint proposal led by Xue Yanzhong, a national CPPCC member and chairman of the Shanxi Provincial CPPCC Committee, along with other national CPPCC members stationed in Shanxi. This proposal focused on the long-stagnant development of Shanxi's aluminum industry, hoping for national-level support for its transformation and upgrading.

The proposal suggests supporting Shanxi in developing aluminum deep processing projects, creating a characteristic deep processing industry for aluminum, coordinating the resolution of electrolytic aluminum capacity replacement indicators, and providing more financial and tax support, and financing-related policies, supporting the transformation and upgrading of the aluminum industry as a key aspect of poverty alleviation in the Lvliang mountainous area.

Regarding the reasons for submitting this proposal, the members stationed in Shanxi provided four main points:

1. The Need for Transformation of Shanxi's Industrial Structure

As a resource-based province, Shanxi has long formeda dominant coal-based industrial structure with suboptimal structure. Affected by many factors such as the coal market, the province's economic development is currently facing its most difficult period and urgently needs to build a modern industrial system that is in line with the province's actual conditions, supports diversification, has a reasonable layout, and has a high-end industrial chain.

Supporting the transformation, upgrading, and innovation of Shanxi's aluminum industry will help Shanxi build a diversified, high-end modern industrial system and find a new path for innovation-driven transformation and development in resource-based areas.

2. Shanxi Has Significant Advantages in the Transformation and Upgrading of the Aluminum Industry

Shanxi is an important national resource and energy base, with abundant bauxite, coal, and electricity resources. Shanxi's development of the aluminum industry, building a“coal-electricity-grid-aluminum-application” integrated industrial system, has obvious advantages.

First, resource advantages.Bauxite in Shanxi is widely distributed and relatively concentrated. As of2015the end of the year, the cumulative verified reserves are approximately15.27billion tons, accounting for32.5%of the national reserves, ranking first in the country.Second, energy advantages.Shanxi's current coal production capacity is approximately12billion tons, and its installed electricity capacity is700010,000 kilowatts. The abundant coal and electricity resources can fully meet the energy needs of expanding and extending from alumina to electrolytic aluminum and then to aluminum materials and aluminum products.Third, industrial base advantages.As of2016the end of the year, Shanxi has formed an alumina production capacity of170010,000 tons, electrolytic aluminum production capacity of119.510,000 tons, and aluminum processing capacity of7510,000 tons, establishing a relatively complete industrial system with a high degree of integration, advanced technology, and a relatively complete internal structure, laying the foundation for transformation and upgrading.

3. Helping Concentrated and Contiguous Poor Areas Such as the Lvliang Mountainous Area to Advance Poverty Alleviation

Supporting the transformation, upgrading, and innovation of Shanxi's aluminum industry will help poverty alleviation in the Lvliang mountainous area and other concentrated and contiguous poor areas. The Lvliang mountainous area is a nationally designated concentrated and contiguous poor area. Accelerating poverty alleviation in Lvliang, based on local comparative advantages, requires focusing on industrial poverty alleviation and project poverty alleviation. The proven reserves of bauxite in Lvliang are6.92billion tons, accounting for45.7%of Shanxi Province and nearly1/6。2016of the national total. In1200the year, alumina production reached75%10,000 tons, accounting for17.2%of Shanxi Province and100%However, the on-site conversion rate of alumina and aluminum hydroxide is zero, and the external transportation rate is high, with a blank in downstream industries such as electrolytic aluminum and aluminum processing materials, resulting in the double loss of aluminum resources and benefits. Currently, if all the alumina in Lvliang is converted, at least60010,000 tons of aluminum processing capacity can be formed, resulting in an industrial added value of more than700hundreds of millions of yuan and taxes of nearly600hundreds of millions of yuan. This will accelerate Lvliang's progress towards building a moderately prosperous society in all respects.

4. Optimizing the National Productivity Layout

Supporting the transformation, upgrading, and innovation of Shanxi's aluminum industry will help optimize the national productivity layout and achieve efficient and intensive allocation of resources. Among the factors necessary for the development of the aluminum industry, Shanxi is the only province in China with advantages in bauxite, coal, and electricity, with obvious comparative advantages.

Regarding how to support the transformation and upgrading of Shanxi's aluminum industry at the national level, the members stationed in Shanxi have made suggestions in three areas:

1. Support Shanxi in developing aluminum deep processing projects and creating a characteristic deep processing industry for aluminum

Given Shanxi's current situation in the national aluminum industry, where it is a major alumina producer but a minor electrolytic aluminum and aluminum processing province, with a severely unbalanced industrial structure, it is recommended that the state formulate differentiated industrial policy guidance catalogs for the eastern, central, and western regions based on their respective resource endowments and industrial foundations. Shanxi's aluminum industry transformation and development should be incorporated into the national industrial development plan with priority given, supporting Shanxi in leveraging its comparative advantages, developing deep processing of aluminum materials, extending the downstream aluminum industry chain, achieving full industry chain development, upgrading the level and added value of industrial development, helping Shanxi to transform and upgrade traditional industries, and accelerating innovation, transformation, and upgrading.

II. Coordinate and resolve the electrolytic aluminum production capacity replacement index

Developing deep processing of aluminum materials and extending the aluminum industry chain, electrolytic aluminum is the core product. Given that the electrolytic aluminum production capacity replacement work is headed by the Ministry of Industry and Information Technology, it is suggested that the Ministry of Industry and Information Technology give Shanxi preferential support in the electrolytic aluminum production capacity replacement index, and adjust it nationwide200Ten thousand tons of production capacity replacement indicators to Shanxi, allowing Shanxi to appropriately increase electrolytic aluminum production capacity under the premise of environmental protection, energy saving, and efficiency, in accordance with the "coal-electricity-aluminum integration" approach, supporting Shanxi's aluminum industry transformation and upgrading.

III. Support the transformation and upgrading of the aluminum industry as a key aspect of poverty alleviation in the Lvliang Mountains

Based on the resource endowments and industrial foundation of the Lvliang Mountains area, it is recommended that the state give more consideration to Lvliang City in the planning and arrangement of aluminum industry projects, and that it enjoy relevant national industrial poverty alleviation policies.

The above is the main content of the proposal. Here are a few supplementary points in conjunction with the proposal:

I. How strong is Shanxi's aluminum industry?

Shanxi is known for its coal, but its advantages are less obvious compared to bauxite. As mentioned in the proposal, as of2015the end of the year, the cumulative verified reserves are approximately15.27billion tons, accounting for32.5%of the national reserves, ranking first in the country.

The "National Mineral Resource Plan (2016-2020) year" further highlights Shanxi's resource advantages in bauxite. The plan includes5nationally planned bauxite mining areas, and Shanxi Province is listed in4areas, namely: Xingxian Bauxite Mining Area, Ningwu-Yuanping Bauxite Mining Area, Fenyang--Xiaoyi Bauxite Mining Area, Jiaokou--Fenxi Bauxite Mining Area. Below is an introduction to the mining areas:

1Xingxian Bauxite Mining Area - Xingxian, Linxian, Kelan counties, Shanxi

This mining area belongs to the Hedong metallogenic basin in Shanxi. Due to the unclear fault depression situation, only the east slope ore belt is currently known. The east slope ore belt is210kilometers long and10-30kilometers wide, including Baode,-Xingxian,-Linxian,-Liulin,-and Zhongyang's large and medium-sized bauxite deposits19The Xingxian bauxite concentrated area has, from north to south, approximately

ore deposits above the table, namely Baode Tianqiao, Haojiata, and Balougou; Weijiatan, Huanghuitou, Hejiagetai, and Chejiazhuang in Xingxian; with a total resource of7100 million tons or more.1The Linxian area in the eastern slope of the Hedong Basin has

bauxite deposits, of which6are above the table: Linxian Tuanshuitou, Lanjiashan and Chengjiazhuang in Liulin County, Zhongyang Shuiquangou, and Sucun; with total resources of nearly5ten million tons.5Ningwu

2Yuanping Bauxite Mining Area - Ningwu County, Yuanping County, Shuozhou City, Shuozhou District, Shanxi-This mining area is located in Ningwu

Jing Le metallogenic basin. This basin is narrow and long, well-closed, with steep slopes on the west and east sides, mostly small and medium-sized deposits. The north and south ends have gentler slopes, mostly forming large and medium-sized deposits.-The Shuozhou bauxite concentrated area is mainly composed of high-alumina clay

bauxite. There are currently about-ore deposits above the table, namely Shenchi Jiugu, Shuozhou Haojiagou, and Huai'ren Louzigou. The deposits are shallowly buried.3The surface mining conditions are good, with reserves of1303ten thousand tons.

Ningwu-Yuanping concentrated area has7ore deposits above the table: Ningwu Kuangcaoping, Xihonghe, Yuanping Jiaoquan, Shiqiang, Hongchi, Nanling, and Changlianggou, with total resources of7214ten thousand tons. It has also become one of the main raw material supply bases for Jinbei Alumina Plant.

3Fenyang--Xiaoyi Bauxite Mining Area - Fenyang City, Xiaoyi City, Jiaokou City, Shanxi

Xiaoyi-Jiaokou bauxite concentrated area is located in the west slope bauxite belt of the Fenxi Basin, kilometers long and60kilometers wide, with15deposits discovered, and bauxite resources of37100 million tons. The deposits in this area have high density, good continuity, concentrated reserves, and mostly large scales, making it the main source of ore for Shanxi Aluminum Plant.3.95Among them, there are

ore deposits above the table, namely Du Village, Chaichang, Xiangwang, Shigongxi, Xiabao, Shigong, and Lingshangbei in Xiaoyi17个，分别是孝义的杜村、柴场、相王、石工西、下堡、石工、岭上北-Bujiayu, Ke'e Mining Section, Ke'e Mining Area, Stone Workers-Ke'e interval, Xihedidi, Jiaozuo's Xiangyi, Houwucheng, Nanlingshang, Pangziwa, Bijiazhang, Zhaojiageduo.

4Jiaozuo--Fenxi Bauxite Mining Area - Shanxi Lüliang City, Jinzhong City, Linfen City

The Shanxi Lüliang bauxite mining area is located in the eastern part of the central He Dong coalfield, in the northern part of the Lishi-Zhongyang rhombic syncline in the Lüliang block uplift of the Lüliang-Taihang fault block. The thickness of the bauxite ore in the mining area is generally thicker in the north-south direction and thinner in the central part. The maximum thickness of the bauxite ore in the entire area is4.06m，最小厚度为0.81m，平均厚度为1.51m。

And Lingshi (Jinzhong City)-Huozhou (Linfen City) concentrated area belongs to the Lingshi submarine uplift bauxite belt and the southern margin submarine uplift bauxite belt of the Huo Xi basin. The two belts intersect in an inverted T-shape. There are bauxite deposits in the belt5all of which are surface deposits: Yangjiashan, Nanguan, Maojiangling in Lingshi County; Shil in Huozhou City; and Diandi in Fenxi County. The deposits are medium to small in scale, with an average thickness of1.29-4.13m。

II. The aluminum industry has been written into Shanxi Province's“13th Five-Year Plan”

In fact, Shanxi Province has also recognized its advantages in the aluminum industry and attaches importance tothe coordinated advancement of the “coal-electricity-aluminum” industry. For example, the coal-electricity-aluminum industry is an important part of Yangmei Group. In addition, the “Shanxi Province's 13th Five-Year Plan for Industrial and Informatization Development” also makes detailed plans for the aluminum industry:

The aluminum industry adheres to the integrated development of coal, electricity, and aluminum materials, optimizes production capacity and resource allocation, promotes mergers and acquisitions, improves industrial concentration, and builds three major aluminum industrial clusters in the south, west, and central regions, with a focus on building two million-ton aluminum industrial bases in Yuncheng and Lüliang. Taking industrial chain synergy optimization, capacity matching, and extended processing as the direction of development, we will promotethe coordinated development mechanism of “coal-electricity-aluminum”, optimize the industrial chain of “bauxite-alumina-aluminum electrolysis-aluminum deep processing”, and promote on-site resource transformation. Support large aluminum enterprises to carry out industry integration, vigorously expand the field of aluminum deep processing, and form3-5large enterprise groups with supporting aluminum industry chains.

In the Plan,only listed after the metallurgical industry, which is enough to show Shanxi Province's attention to the development of the aluminum industry. However, as mentioned above, Shanxi is in a state of having a large alumina production, small electrolytic aluminum production, weak aluminum processing, and serious imbalance in industrial structure in the national aluminum industry pattern. The aluminum industry in Shanxi Province is large but not strong, and under the background of being unable to cope with it in the province, it is reasonable to hope for support from the national level.

III. Shanxi's production capacity reduction will be expanded to the aluminum industry

Recently, the Ministry of Environmental Protection, the National Development and Reform Commission, the Ministry of Finance, and the National Energy Administration, together with the people's governments of Beijing, Tianjin, Hebei, Shanxi, Shandong, and Henan, issued the “Work Plan for Air Pollution Prevention and Control in the Beijing-Tianjin-Hebei Region and Surrounding Areas in the Year,” requiring the above-mentioned provinces and cities to limit production of electrolytic aluminum plants during the heating season by2017年大气污染防治工作方案》，要求上述省市在采暖季电解铝厂限产30%以上，氧化铝厂限产30%左右。

Under such circumstances, Shanxi's aluminum industry's production capacity reduction is inevitable, which also affects the development plan of the aluminum industry that originally hoped to develop its strengths. Therefore, the members stationed in Shanxi suggested that the Ministry of Industry and Information Technology should give Shanxi preferential support in terms of electrolytic aluminum production capacity replacement indicators. However, considering that this plan is aimed at air pollution prevention and control around Beijing-Tianjin-Hebei, it is obviously difficult for the above suggestion to be supported.