H1 2023: Chinalco Guangxi marks 4.12% rise in usual bauxite production with greener operational means

During the first half of this year, Chinalco Guangxi crossed its output plan, with production levels of bauxite and alumina surpassing the original estimation by 4.12 per cent and 2.32 per cent, respectively. Additionally, the accumulated net operating cash flow exceeded the budget by RMB 200 million, despite facing immense difficulties, such as high raw material prices.

To achieve these goals, the Secretary of the Party Committee and General Manager of the Guangxi Branch, Huang Weiping, proposed that all units and employees adhere to the work requirements of "strict, early, fast, and good" and carry out their work in a pragmatic manner. 

Despite facing challenges such as rising electricity prices in the Southern Power Grid, a continued shortage of global natural gas sources, and rising prices, Guangxi Branch responded actively, promoting the application of the "three modernizations and one improvement" management model and continuing to strengthen the cost "five "Culturalization" management. Regular meetings on cost reduction and efficiency enhancement were held to improve and reduce costs in all directions.

Over the past six months, various departments and units have taken proactive measures to reduce costs. Mining companies faced challenges such as declining ore grades and longer transportation distances. To achieve continuous reductions in mining costs, they implemented various initiatives like "rushing production and ensuring production and supply" labour competitions in mines, prospecting for defective ore body resources, and optimizing mine production organizations. The alumina plant utilized a range of lean tools and management methods to implement a "four reductions" special action aimed at reducing the consumption of fresh water, electricity, compressed air, and steam.

The functional departments of the Guangxi Branch collaborated effectively. The Equipment and Energy Department optimized new water, steam, and other energy management to reduce energy costs by RMB 40.88 million. The Marketing Management Department changed the procurement model and realized a total cost reduction of RMB 42.6823 million for boiler coal and two alkalis relative to the market index. The Finance Department secured various tax incentives and policies, resulting in a cost reduction and efficiency increase of RMB 11.52 million.

During the year's first half, the cumulative total cost of alumina in the Guangxi Branch demonstrated a monthly downward trend, with the branch's cost competitiveness firmly at the forefront of Chinalco. The Guangxi branch conducted a "big discussion" activity aimed at "striving to be the 20th model of the party and catching up with and surpassing the first-class pioneer." This activity guided the majority of cadres and employees to change their thinking style, tap into internal potential based on their positions, and reduce costs while enhancing efficiency.

Guangxi Branch has been undertaking quality benchmarking and improvement actions since the start of this year. The three quality indicators tracked by Chalco have exceeded the target value, and 11 company-level quality targets have been fully completed. The enterprise has also been recognized as the top-performing joint-stock enterprise for six consecutive months.

Efficient equipment operation is essential for stable and continuous production. Guangxi Branch's thermal power plant has carried out single-coal gasification tests, multi-coal mixed gasification tests, and gasification tests under different process conditions since the beginning of this year.

Safety is a top priority for Guangxi Branch, and the enterprise has formulated an annual action plan for Chinalco Safety Management Strengthening. The plan includes:

• On-site violation investigations
• Hidden danger investigations and governance
• Various special inspections at all levels

These efforts have continuously consolidated the foundation of safe production.

The enterprise has applied for the Guangxi Innovation-Driven Development Special (Peak Program) project in collaboration with universities and institutes. The project includes "Low Energy Consumption Alumina Production Technology Research and Industrial Application," which has been approved and supported by funding. Guangxi Branch has also organized and implemented two national projects and received funds of RMB 1.7757 million. Guangxi Branch has been undertaking quality benchmarking and improvement actions since the start of this year. The three quality indicators tracked by Chalco have exceeded the target value, and 11 company-level quality targets have been fully completed. The enterprise has also been recognized as the top-performing joint-stock enterprise for six consecutive months.

As the leading unit of Chinalco's quality and income multiplication project, Guangxi Branch has established a quality and income evaluation system, which includes full-coverage sharing and "look back", among other initiatives. These efforts have focused on improving the quality of alumina, reducing red mud adhesion, and enhancing metal gallium recovery. The enterprise has completed 67.59% of the annual plan for quality income and has been rated as excellent in the evaluation of Aluminum Corporation of China's organizational system maturity.

Guangxi Branch has been accumulating new potential energy through technological innovation. The enterprise completed the work related to the construction of the high-value patent cultivation demonstration centre in Guangxi Zhuang Autonomous Region in 2022 and carried out 61 independent research and development projects. Two of these projects were included in the Guangxi Science and Technology Department projects, and the scientific research projects achieved a profit of RMB 30.08 million.

The Guangxi Branch has been making steady progress despite difficulties and challenges. The enterprise has obtained approval for the commencement of the replacement project of the mine's mud discharge storage and the establishment of the pipeline dissolution transformation project. The reform efficiency of the Guangxi Branch has strongly improved, and the development trend continues to be positive. The enterprise will continue to overcome difficulties and advance on the road to high-quality development.