On the evening of October 18, Nanshan Aluminum disclosed the rights issue prospectus, and the company's one-year rights issue financing officially entered the issuance stage. The announcement shows that the company will allocate shares to all shareholders at a rate of 3 shares for every 10 shares, with a share price of 1.7 yuan / share, and plans to raise no more than 5 billion yuan for the construction of a production capacity of 1 million tons / year in Indonesia. Alumina project.
According to industry insiders, Nanshan Aluminum's layout of alumina production lines in overseas bauxite raw materials areas is expected to greatly improve the company's ability to resolve raw material costs and environmental pressures, and lay a good foundation for the company to maintain an advantageous competitive position in the aluminum industry chain.
The average annual contribution of the investment projects is 596 million yuan
The funds raised by Nanshan Aluminum will be invested in the "Indonesia Bintan Nanshan Industrial Park 1 Million Tons Alumina Project" constructed in Indonesia, with a total investment of US $ 836 million, or approximately RMB 5.685 billion. Among them, the planned use of raised funds does not exceed 5 billion yuan, and the shortfall is to be solved by the company with self-raised funds. The project is implemented by the company's overseas indirect holding subsidiary BAI. The project construction site is located in Bintan Island, Riau Province, Indonesia.
Indonesia is one of the countries in the world that is more suitable for the construction of alumina projects. The country has 1 billion tons of bauxite reserves, which is a high-alumina high-silicon three-water low-temperature mine. The project address is located in Bintan Island, Indonesia, which is close to Riau Archipelago and West Kalimantan Province, the main alumina producing areas in Indonesia, and has sufficient raw material supply. At the same time, the project is adjacent to Singapore, and the distance between Singapore and Singapore is only 92.52 kilometers. It is adjacent to the Singapore Strait and the Malacca Strait in the north and the South China Sea in the east. The project is equipped with ports and transportation is extremely convenient.
The project partner, SANTONY, is one of the largest private bauxite mine owners in Indonesia. The mining area with bauxite mining rights exceeds 50,000 hectares, and the bauxite reserves are expected to exceed 100 million tons. The purchase price shall be determined by the two parties on the basis of the average monthly selling price of the Indonesian bauxite market announced by the Indonesian government each month.
According to the calculation data announced by the company, the alumina production cost of the Indonesian project is equivalent to RMB 1624.86 / ton (excluding tax), while the full cost of alumina in northern China is about 2800 yuan / ton, which is about 2300 yuan / ton after deducting VAT. , Significantly lower than the cost of domestic alumina. Calculated based on the alumina sales price of $ 310 per ton, the annual average profit of Nanshan Aluminum will be 596 million yuan after the production is reached. Calculated by Nanshan Aluminum's net profit of 1.611 billion yuan in 2017, this project will increase the company's profit by nearly a third after it reaches production.
The overseas layout of alumina projects has become a trend
According to customs data, China imported 68.55 million tons of bauxite in 2017, accounting for about 50% of domestic bauxite demand in the year. In recent years, domestic aluminum companies have also continued to deploy overseas alumina and bauxite projects, including Chinalco Group, Weiqiao Group, Jinjiang Group, Bosai Group, Jiugang Group, and Guodian Investment. Construction or project planning.
Data show that the global bauxite mineralization belts are mainly distributed in Africa, Oceania, South America and Southeast Asia. From the perspective of national distribution, bauxite is mainly distributed in Guinea, Australia, Brazil, Jamaica, Vietnam, and Indonesia, of which Guinea (7.4 billion tons of reserves), Australia (6.2 billion tons of reserves), Brazil (2.6 billion tons of reserves), Jamaica (2 billion tons), the proven bauxite reserves of the four countries account for about 65% of the 28 billion tons of global bauxite reserves. Indonesia's bauxite reserves are 1.9 billion tons, with proven reserves of 24 million tons, mainly distributed in Bangka and Belitung Islands, West Kalimantan and Riau provinces.
From the perspective of bauxite output, domestic bauxite output is difficult to meet the domestic production of alumina. China has a high dependence on imported bauxite and huge imports of bauxite. There is a fundamental difference between domestic bauxite and imported bauxite. Domestic bauxite is dominated by monohydrate bauxite, and imported bauxite is dominated by gibbsite. Different ore has different requirements for smelting production lines and processes. Most of the alumina production lines in Shanxi, Henan, Guangxi and other regions in China use domestic ore as raw materials, while the alumina production lines in Shandong where Nanshan Aluminum is located mostly use imported bauxite as raw materials. Nanshan Aluminum's overseas presence will strengthen its ability to resist risks, while driving China's technology and equipment exports and increasing corporate profits.