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Cosco plans to buy 25 ships to transport bauxite from Africa

Metal News - Published on Mon, 05 Nov 2018

Image Source: Wall Street Journal
WSJ reported that Chinese Cosco Shipping Cop. is in talks with shipyards in China to order about 25 massive ships that will move bauxite from the West African country of Guinea for aluminum production in China. The people involved in the matter said that the move is part of a plan by state behemoth Aluminum Corp. of China (Chalco) to invest USD 700 million in Guinea’s Boffa project for a steady supply of the commodity over the next decade.

Cosco is looking to add to its fleet on the back of a long-term contract with Chalco to move aluminum to China.

Guinea is a hotbed of mining activity in recent months as aluminum firms from the US, China and Russia, try to carve out a piece of its massive bauxite-ore deposits used to produce alumina and aluminum. About seven billion metric tons, or a quarter of the world’s bauxite resources, are estimated to be in Guinea.

One person, who is part of the project said that “Cosco is looking for seven ships at the start and the tally will likely be more than 25 vessels. They will move around six million (metric) tons of bauxite in the first phase, which will more than double as mine production rumps up.”

Demand for aluminum shipments is expected to grow steadily over the next years, according to brokers in Singapore and London who work on forward cargo contracts. China is the world’s biggest importer of the commodity.

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Posted By : Rabi Wangkhem on Mon, 05 Nov 2018
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