BEIJING, Wed: China will halt spending on new aluminium projects as part of a plan to rein in uncontrolled expansion and ease energy demand.
The country also won’t approve investment in new mines and smelters for tungsten, molybdenum, tin, antimony and rare earths, its top planning agency said in a statement released today.
The ban excludes spending to upgrade smelters to reduce pollution, according to the National Development and Reform Commission.
Premier Wen Jiabao is trying to cool excessive investment in aluminium, steel and other industries, which has driven up raw material prices, increased pollution and spurred inflation in the world fastest-growing economy.
China makes a third of the world’s steel and is the biggest producer of aluminum.
Aluminium output capacity will reach 10.3 million tonnes this year, and exceed demand by 2.6 million tonnes, according to Liu Zhi, industrial policy director with the commission.
Aluminium is used in aircraft and beverage cans.
China has imposed several measures to discourage aluminium production in order to ease energy demand.
This year the Government imposed taxes on aluminium exports and banned tolling, the import of alumina to make aluminium for exports.
Rising costs for the raw material alumina are causing losses for most major aluminium producers except for Aluminum Corp of China, which controls about half the nation’s alumina production, said Liu.
He declined to say when the Government will release a detailed development guideline for the aluminium industry. — Bloomberg
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