India will make a whirlwind come back on bauxite supply to China

Asian Metal: Based on the data from China Customs, China imported around 2.13 million tonnes of bauxite from India in 2017, down by around 53% YOY. In the first four months of 2018, China did not import bauxite from India. How do you think of the reasons?

Muralidharan Thoykkat: China is possibly getting good quantities from Guinea with lower silica. Supplies from Indonesia, Malaysia and Jamaica also flowed into China off and on. However, Guinea bauxite would not be logistical advantage for a long time. India, being the nearest point as compared to Guinea, would definitely come back to China’s strategy map of bauxite procurement. Also Indian bauxite would be very viable for blending.

Asian Metal: What are the advantages of Indian bauxite? Will China restart bauxite import from India?

Muralidharan Thoykkat: The basic advantage with Indian bauxite is the proximity and logistics. India always maintained a highly cordial and brotherly relationship with China when it comes to minerals, such as Iron ore or bauxite or Chrome Ore. My hunch is that we will make a whirlwind come back on bauxite supply to China. Indian bauxite can also be very viable for blending with lower silica materials procured /sourced from elsewhere, including from Guinea to find an economy proposition.

Asian Metal: How do you think of Chinese demand for imported bauxite in the future? Are you confident?

Muralidharan Thoykkat: China, with large aluminum output resources and being the leader in the world, I have every hope that China’s demands are going to climb upward by mobile. Yes, the growth graph is going to certainly progress positively in the times to come.

Asian Metal: Did Magnetic Minerals Resources export bauxite to China before?

Muralidharan Thoykkat: Our Mine has always sold on domestic trade including supplying to domestic trading companies. However, we have taken an important step to export bauxite from our mines in future and stopped all marketing efforts to domestic traders / end users.

Asian Metal: What kind of bauxite do you produce and how about the reserves and annual capacity?

Muralidharan Thoykkat: We produce bauxite with Al2O3 45%min and SiO2 6-7% with consistent quality. This is a natural product and we cannot change the inherent chemistry. We can export approximately 200,000 MTs per month or 2.4 Million tonnes per annum. We have the export permission for the quantity.

Asian Metal: Currently, where do you sell bauxite? How about your production in 2017 and the expected figure in 2018?

Muralidharan Thoykkat: As already stated, we are currently doing domestic trade only. Due to lower demand from China, our mine did less than half a million MTs in 2017. In 2018 we plan to do at least 1 Million MTs. However, our future strategy is only export.

Asian Metal: After China cut import from India, many bauxite owners in India focus on the Indian domestic market. What is your opinion on the demand in the domestic market?

Muralidharan Thoykkat: Domestic market is not very good. There is only one end user who can buy bauxite from the miners like us. Other alumina refineries have their own mines attached to the factories.

Asian Metal: From early this year, the trade conflict in the world became fierce, which is turning to trade war. Do you think the global aluminum industry will be affected?

Muralidharan Thoykkat: The global aluminum industry will not be affected at all as China is sitting in epitome of aluminum production. Strategically, China is not going to face any problem with the onset of global trade conflict. I personally feel China would find a special place and take advantage of the conflict if at all it occurs.