Aluminum Production and Distribution in Yunnan Province, China

1. Production Capacity: Yunnan Province is one of China’s key aluminum producers, with significant bauxite resources that provide the raw material necessary for aluminum production. Over the years, Yunnan has developed a robust aluminum industry, thanks to its rich bauxite deposits and favorable conditions for hydroelectric power generation, which is essential for the energy-intensive process of aluminum smelting.

2. Major Production Areas: The primary bauxite mining and aluminum production areas in Yunnan include:

Wenshan Prefecture: This region is known for its substantial bauxite reserves and plays a crucial role in Yunnan’s aluminum production. The bauxite extracted here is used as raw material in alumina and aluminum production.
Puer and Baoshan: These areas have also been identified as key zones for bauxite mining. The establishment of processing facilities in these regions supports the local aluminum industry by providing a steady supply of raw materials.
Qujing and Chuxiong: These cities host significant aluminum smelting facilities, benefiting from Yunnan’s abundant and inexpensive hydropower resources, which help lower production costs and reduce carbon emissions compared to coal-based power.

3. Energy Efficiency and Environmental Considerations: Yunnan’s aluminum industry is characterized by its use of clean and renewable energy sources. The province’s abundant hydropower resources make it an attractive location for aluminum production, as it reduces the carbon footprint associated with the smelting process. This energy efficiency aligns with China’s broader goals of reducing emissions and promoting sustainable development in its industrial sectors.

4. Economic Impact: The aluminum industry significantly contributes to Yunnan’s economy, providing employment opportunities and supporting local businesses. It also plays a vital role in the national aluminum supply.

Yunnan Province’s Green Aluminum Industry: Production and Distribution

1. Strategic Importance and Development: Yunnan Province has emerged as a critical area for the transfer of China’s electrolytic aluminum industry, particularly under the “Northern Aluminum to the South, Eastern Aluminum to the West” strategy. The province is seizing opportunities presented by initiatives like the Belt and Road, the new round of Western Development, and regional cooperation. Yunnan aims to build the “China Green Aluminum Valley,” leveraging its abundant energy resources to foster a green, low-carbon, integrated, and competitive aluminum industry cluster. This strategy has resulted in the development of a comprehensive industrial chain that spans from raw materials and electricity to green aluminum, deep processing of aluminum products, and comprehensive utilization.

2. Policies and Planning: Yunnan is the only province in China that actively supports the development of a full green aluminum industry chain. In recent years, Yunnan has issued several policy documents, including the “Three-Year Action Plan for the Development of Yunnan’s Green Aluminum Industry (2022–2024)” and measures to support the green aluminum industry. The goal is to establish the “China Green Aluminum Valley” by 2030, making Yunnan’s green aluminum industry globally competitive in terms of scale, processing, and innovation.

3. Resource Base and Energy Advantage: Yunnan is rich in green energy resources, a key factor in its aluminum industry development. The province’s total exploitable green energy capacity exceeds 200 million kilowatts, making it a leader nationwide. This includes 104 million kilowatts of hydropower, around 98 million kilowatts of theoretical exploitable capacity, and significant wind and solar power potential. By May 2024, Yunnan’s total power generation capacity reached 136.24 million kilowatts, with clean energy (hydropower, wind power, photovoltaic) accounting for 89.5% of total power generation. This extensive use of clean energy reduces the carbon footprint of aluminum production and provides a competitive edge with electricity costs significantly lower than the national average.

4. Bauxite Resources and Aluminum Production: Yunnan has substantial bauxite resources, ranking sixth in China in terms of confirmed bauxite reserves. The province has 30 bauxite mining areas, primarily located in Wenshan Zhuang and Miao Autonomous Prefecture (including Qiubei, Malipo, Xichou, Yanshan, and Wenshan County), Dali Bai Autonomous Prefecture (Heqing County), and Zhaotong City. As of now, Wenshan has proven reserves of 1.5 billion tons, with 1.1 billion tons available for development, positioning it as the leading bauxite reserve area in Yunnan.

5. Aluminum Production Capacity: Yunnan is one of China’s leading regions in electrolytic aluminum production, with a capacity of 6.33 million tons (about one-sixth of the national capacity). This is expected to increase to 8.26 million tons, approaching one-fifth of China’s total capacity. Key production areas include:

Wenshan Zhuang and Miao Autonomous Prefecture: The largest contributor, with a capacity of 2.48 million tons already built and another 950,000 tons under construction, totaling 3.43 million tons, accounting for 41.5% of the province’s capacity.
Honghe Hani and Yi Autonomous Prefecture: Second largest, with 2.48 million tons of completed and under-construction capacity.
Zhaotong City: Contributing 700,000 tons per year.

6. Production Growth and Economic Impact: Yunnan’s electrolytic aluminum production has shown an upward trend, with a total output of 4.3874 million tons in 2023, marking a 5.6% increase from the previous year. Wenshan, Dali, and Zhaotong are major contributors, accounting for approximately 79% of the province’s total output. In 2023, Yunnan’s green aluminum industry’s output value surpassed 100 billion yuan for the first time, reaching 118.4 billion yuan, a year-on-year growth of 23.7%.

7. Industry Layout and Key Enterprises: The “Two Plus Four” spatial development strategy outlined in the “Three-Year Action Plan” aims to concentrate green aluminum development in Wenshan and Honghe, with coordinated development in Dali, Zhaotong, Qujing, and Kunming. Key aluminum industry parks are established in these regions, attracting major projects like Yunnan Hongtai’s 2.03 million-ton green aluminum project and Yunnan Shenhuo’s 900,000-ton integrated aluminum project. Leading companies such as Chinalco Group, Shandong Weiqiao, Shenhuo, and Sichuan Qiya have established a strong presence in Yunnan, enhancing the scale and influence of the province’s green aluminum industry.

8. Innovation and Research: Yunnan’s green aluminum industry boasts a comprehensive and robust industry-academia-research system. It includes key institutions such as Kunming University of Science and Technology, Kunming Nonferrous Metallurgy Design Institute Co., Ltd., and Yunnan Aluminum Co., Ltd., known for their advanced technological capabilities in aluminum research and development.

This overview reflects Yunnan Province’s ongoing efforts to lead in the development of a sustainable and competitive aluminum industry, supported by rich natural resources, favorable policies, and significant investment in innovation and infrastructure.