Nanshan Aluminum International announced that for the year ended December 31, 2025, the company's total revenue was US$1.142 billion, an increase of 11.9% year-on-year; and the profit for the year was US$418 million, a decrease of 8.6% year-on-year.

On June 7, 2025, SMM Aluminum Division Senior Manager Anran Ju and Aluminum Analyst Xinyi Liu led a delegation on a field trip to PT. Bintan Alumina Indonesia 's industrial park, where they visited BAI's alumina refinery and port facilities. Company Profile PT Bintan Alumina Indonesia (BAI) , established in 2018 and headquartered in the Galang Batang Special Economic Zone (SEZ) on Bintan Island, Riau Islands, Indonesia, specializes in producing smelter-grade alumina (SGA). The company's alumina refinery commenced operations in 2022 with an initial capacity of 2 million mt per year (Mtpa), processing approximately 6 million mt of domestically mined bauxite annually. It plans to expand its capacity by 1 million mt/year in both 2025 and 2026, ultimately achieving a total capacity of 4 million mt/year. BAI is 72.7% owned by Global Aluminium International Pte Ltd (a joint venture between Nanshan Aluminum Singapore Pte Ltd (95%) and Redstone Group (5%)), 25% by Press Metal Aluminium Holdings Bhd, and 2.3% by PT Mahkota Karya Utama. The company has signed a long-term supply agreement with Press Metal, committing to supply 1.5 million mt of alumina annually until 2040. BAI has also developed comprehensive infrastructure, including a dedicated port and a 160-megawatt coal-fired power plant, and secured electricity supply of up to 1,300 MW until 2050 through an agreement with PLN. Emphasizing environmental protection and energy conservation, BAI obtained certification as a Production & Transformation member from the Aluminium Stewardship Initiative (ASI) in May 2025. During the visit, both parties engaged in in-depth discussions on key topics such as commissioning progress, capacity expansion plans, cost structure analysis, red mud treatment technologies, and environmental protection measures. The BAI management team not provided detailed introductions to production processes and quality control standards but also guided the delegation through critical workshops including roasting, leaching, and precipitation, as well as demonstration areas for dry red mud treatment processes and tailings recycling. Subsequently, the delegation visited the port area to observe ore handling efficiency, storage management, and safety protocols. Through close exchanges, the parties reached preliminary consensus on optimizing supply chain collaboration, sharing energy conservation experiences, and expanding regional markets, agreeing to conduct further technical and commercial engagements in subsequent phases. This visit not enhanced mutual understanding but also laid a solid foundation for future cooperation in areas such as production process improvement, resource integration, and sustainable development. Both sides look forward to working together to advance Indonesia's alumina industry toward higher levels of green and intelligent development.

SMM Alumina Morning Comment on June 3 Futures Market: The night session was not open last Friday. The most-traded ag2509 futures contract opened at 2,955 yuan/mt in the daytime session, with a high of 2,973 yuan/mt, a low of 2,930 yuan/mt, and closed at 2,962 yuan/mt, up 1 yuan/mt or 0.03% from the previous close, with an open interest of 320,000 lots. Ore: As of May 30, the SMM Import Bauxite Index was reported at $74.38/mt, up $0.27/mt from the previous trading day. The SMM Guinea Bauxite CIF average price was reported at $74/mt, unchanged from the previous trading day. The SMM Australia Low-Temperature Bauxite CIF average price was reported at $70/mt, unchanged from the previous trading day. The SMM Australia High-Temperature Bauxite CIF average price was reported at $65/mt, unchanged from the previous trading day. Industry News: Bauxite Port Inventory: According to SMM statistics as of May 30, the total bauxite inventory at nine domestic ports was 21.56 million mt, up 580,000 mt from the previous week. According to Nanshan Aluminum, the raw material grinding and digestion unit hot commissioning for the Phase III alumina project of Indonesia Bintan Alumina Company was recently initiated simultaneously, marking the official entry of the project into the trial production stage and injecting new momentum into the company's development. Data released by the International Aluminium Institute (IAI) showed that global alumina production in April 2025 was 12.407 million mt, with a daily average production of 413,600 mt. IAI stated that China's estimated alumina production in April 2025 was 7.384 million mt. Alumina Production: According to SMM data, China's metallurgical-grade alumina production in May 2025 (31 days) increased by 2.66% MoM and 4.06% YoY. As of the end of May, China's existing metallurgical-grade alumina capacity was approximately 110.82 million mt, with the actual operating capacity down 0.46% MoM and an operating rate of 77.3%. Basis Report: According to SMM data, the SMM Alumina Index premium against the latest transaction price of the most-traded contract at 11:30 on May 30 was 314.53 yuan/mt. Warrant Report: On May 30, the total registered alumina warrant volume decreased by 11,412 mt from the previous trading day to 126,700 mt. The total registered alumina warrant volume in the Shandong region remained unchanged from the previous trading day at 601 mt. The total registered alumina warrant volume in the Henan region decreased by 1,200 mt from the previous trading day to 300 mt. The total registered alumina warrant volume in the Guangxi region remained unchanged from the previous trading day at 30.01 million mt. The total registered alumina warrant volume in the Gansu region decreased by 3,601 mt from the previous trading day to 1,504 mt. The total registered alumina warrant volume in the Xinjiang region decreased by 6,611 mt from the previous trading day to 121,300 mt. Overseas Market: As of May 30, 2025, the FOB Western Australia alumina price was $370/mt, with an ocean freight rate of $21.95/mt. The USD/CNY selling rate was around 7.21. This price translates to approximately 3,275 yuan/mt at domestic major ports, which is 1 yuan/mt lower than the domestic alumina price, indicating that the alumina import window is gradually opening. Summary: The weekly operating capacity of alumina continued to rebound, reaching 86.67 million mt/year as of last Thursday, up WoW. This has further alleviated the pressure on spot supply, and the upward momentum of spot prices has slowed down. Overseas alumina transactions have been relatively sluggish recently, with relatively small price fluctuations. As domestic prices continue to rise, alumina imports have shifted from losses to profits, and the domestic alumina import window is gradually opening. In the short term, with the gradual resumption of production of some alumina facilities that were under maintenance and experiencing production cuts, the supply pressure of alumina is expected to gradually ease. The average profit of the alumina industry has entered a profitable state, and the market has strong expectations for alumina production resumptions. Alumina futures prices have taken the lead in pulling back, which may drive spot prices to weaken. In the future, it is necessary to continuously monitor changes in the capacity of domestic alumina enterprises and the supply of imported alumina. [The information provided is for reference only. This article does not constitute direct advice for investment research and decision-making. Clients should make decisions cautiously and should not rely on this information to replace their own independent judgment. Any decisions made by clients are not related to SMM.]

According to Nanshan Aluminum, the hot commissioning of ore feeding to the raw material mill and water and steam introduction to the digestion unit for the Phase III alumina project of Bintan Alumina Indonesia was recently initiated simultaneously, marking the official entry of the project into the trial production stage and injecting new impetus into the company's development.

On April 16, at the AICE 2025 SMM (20th) Aluminum Industry Conference & Aluminum Industry Expo - Alumina and Aluminum Raw Materials Forum, hosted by SMM Information & Technology Co., Ltd. (SMM), SMM Metal Exchange Center, and Shandong Aisi Information Technology Co., Ltd., and co-organized by Zhongyifeng Jinyi (Suzhou) Technology Co., Ltd. and Lezhi County Qianrun Investment Promotion Service Co., Ltd., Ding Long, General Manager of the Asia Market Department at Metro Mining Limited, Australia, provided an overview of Metro Mining and shared insights into the potential impact of Indonesia's new alumina production on China's alumina market. Indonesia's Alumina Capacity and Planning As of 2025, Indonesia has 11 alumina projects under construction or planned, with a total capacity of 25.5 million mt. Key Periods: 2024-2025: Approximately 8.5 million mt of new capacity (including production resumptions). After 2025: Over 10 million mt of new capacity is planned. Regional Distribution and Progress of Indonesia's Alumina Capacity Key Region: West Kalimantan (accounting for over 60% of planned projects). Projects with Rapid Progress: •Mempawah Alumina Refinery (3 million mt, with Phase 1 of 1 million mt commissioned in September 2024). •Nanshan Aluminum's Indonesia Base: Total alumina capacity has reached 2 million mt (1 million mt each for Phase 1 and Phase 2), with actual production reaching 1.91 million mt in 2023, accounting for 34.9% of the Southeast Asian market share. The new 2 million mt alumina expansion project is progressing as planned and is expected to be commissioned in 2026. •Jinjiang Group's PT BAP: Total planned capacity of 4.5 million mt/year. Phase 1, a 1 million mt/year alumina refinery, was officially commissioned in January 2025 and is entering the ramp-up stage; Phase 2 (2 million mt/year) is planned to commence in 2026. •A senior executive from Xinfa revealed that Xinfa is preparing to collaborate with local Indonesian enterprises to build power plants and aluminum enterprises. Feasibility studies are currently underway. East Hope Group to Invest in Indonesia's Aluminum Industry Key Region: West Kalimantan (accounting for over 60% of planned projects). East Hope Group: Will launch a 6 million mt alumina and 2.4 million mt aluminum project in West Kalimantan, Indonesia. The 6 million mt alumina project, located in Pontianak, West Kalimantan, will leverage the geographical advantages of being "near the port and near the mine" by constructing its own terminal and power plant, forming a closed-loop system of "bauxite mining - alumina smelting - aluminum production." The project will adopt the world's most advanced technology to ensure "ultra-low emissions" and green production, creating 3,000-3,500 jobs. The project will be constructed in three phases, with the first phase of 2 million mt capacity planned for commissioning in 2028. This will directly reduce domestic aluminum enterprises' raw material procurement costs by approximately 15% and mitigate supply chain risks associated with the over-concentration of bauxite sources in Guinea. Risks and Challenges in Investing in Indonesia's Alumina Industry Infrastructure Backwardness: Unstable power supply and high logistics and transportation costs in remote mining areas directly affect production efficiency and operating costs. Environmental Pressures: Stringent government environmental regulations require significant investment in environmental protection facility upgrades, such as waste (e.g., red mud) treatment to meet standards. Policy and Approval Risks: Projects require approval from both Indonesian and domestic governments, and policy adjustments may lead to project delays or terminations. Political and Economic Instability: Includes local separatism, exchange rate fluctuations, inflation risks, and policy uncertainties. Labor Skill Limitations: Alumina production requires skilled workers, but local labor skills are insufficient, and restrictions on foreign labor increase employment costs. Supply Chain Challenges: Poor management of bauxite mining may lead to supply disruptions, and inefficient logistics affect raw material transportation. Natural Disaster Risks: Indonesia is located in the Pacific Ring of Fire, and natural disasters such as earthquakes and tsunamis may threaten project safety. Australia Has a Fully Integrated Aluminum Industry But has surplus bauxite available for export to China. History of Bauxite Mining on the Weipa Plateau COMALCO commenced production in Weipa in 1963; signed its first long-term bauxite contract with China from Weipa in 2008; in 2018, Metro established the Hill Alumina Mine 100 km north of Weipa; Weipa Plateau bauxite grade: 50%+ alumina, 8%-12% silica; Metro has 130 million mt of resources; high-alumina bauxite, direct shipping ore; 2025 target to expand to 7 million mt annual production; Metro is Australia's only pure bauxite producer, not producing alumina to compete with its customers in the market. Northern Australian Bauxite Offers Significant Maritime Advantages Shipping time to China: 45 days from Guinea compared to 10 days from northern Australia. Australia's Bauxite Resources Additionally, it provided an overview of the 2024 alumina market disruptions. China's Alumina Trade China's alumina imports are expected to decline. China plays a crucial role in balancing the ROW alumina market. During periods of severe shortages, as seen in 2018, China became a net exporter. After Australia implemented an alumina export ban in 2022, China also increased its alumina exports to Russia. 4-6 mt of bauxite can produce 1 mt of aluminum Global aluminum demand is expected to grow by approximately 40% by 2030 Aluminum is a key metal for long-term renewable energy generation/storage, electric vehicles, and electrification. "By 2030, aluminum use in power generation will more than double that of copper" – IEA The aluminum required for the world's transition to green energy will exceed current power sector consumption by 50%. Solar PV power generation is expected to double in the next four years. By weight, aluminum accounts for 85% of the materials used in solar panels. By 2050, wind turbines will require 35 million mt of aluminum annually (4% of materials used). The EV industry will increase global aluminum consumption by 60% to 31.7 million mt by 2030. By 2030, China's aluminum consumption is expected to grow by 12.3 million mt to 56.1 million mt (47% of global demand). Asia (excluding China) aluminum consumption is expected to grow by 8.6 million mt by 2030, with approximately 61% coming from India (35%), the Middle East (19%), and Japan (7%). Aluminum: Already Essential in Modern Society, "Critical" for Energy Transition Technologies •Diverse demand for aluminum in the clean energy transition; •40% growth in aluminum demand from 2020 to 2030; •3-4% annual growth, higher than potential GDP growth. The EV industry will increase global aluminum consumption in transportation by 60% to 31.7 million mt by 2030 Aluminum is characterized by its lightweight, corrosion resistance, durability, high strength, low cost, and high electrical conductivity •It is expected that by 2030, the use of aluminum in European vehicles (both gasoline and electric) will increase from the current 197 kg to 256 kg. •EVs have a higher aluminum content compared to internal combustion engine vehicles, approximately 30% higher For example, Tesla's all-aluminum chassis is a notable example. •By 2030, the global EV fleet is expected to reach 40 million units, a transformation that will revolutionize the automotive industry and significantly boost aluminum demand. •In EV batteries, aluminum is the second most important metal element, accounting for approximately 20% of the battery by weight. Aluminum is extensively used in battery components such as the casing, cathode, and current collector. •EV charging infrastructure will also heavily rely on aluminum for transmission cables, casings, heat sinks, and screw holes. Introduction to Metro Mining Limited Since its commissioning in 2018, Metro Mining Limited has become Australia's second major, independent, and reliable bauxite producer, headquartered in Brisbane, Queensland, with mining operations on the Weipa Plateau. Under the leadership of the management team of newly appointed CEO Mr. Simon Wensley in July 2021, this Australian publicly listed firm has established a reputation for timely bauxite supply in the international financial markets, particularly in the Chinese bauxite market. Metro: Summary and Updates Despite significant impacts from typhoons, 2023 production and shipments reached a record 4.6 million wet metric tons (WMT). Total shipments in 2024 reached 5.7 million WMT, an annual record, representing a 24% increase from 2023. Ikamba demonstrated operational resilience under adverse weather conditions in the second half of December. The 2025 shipment target is 6.5 million to 7 million WMT. Production has commenced. The first shipment of bauxite in 2025 began loading on March 20. Additionally, it provided an overview of Metro's production process, the commissioning of apron feeders and vibrating screens, the commencement of operations at the Ikamba – offshore floating terminal, and the experienced leadership team and board of directors. 》Click to view the special report on the AICE 2025 SMM (20th) Aluminum Industry Conference & Aluminum Industry Expo

Introduction to Metro Mining and Current Status of Alumina Capacity Expansion in Indonesia Metro Mining Metro Mining, an Australian company, focuses on bauxite development and exports. Its core asset is the Bauxite Hills mine in Queensland, Australia, with a resource reserve of approximately 150 million mt and an annual capacity of around 4 million mt of bauxite. Its major clients are alumina refineries in China, the Middle East, and Southeast Asia, with the Chinese market accounting for over 70% of its sales. The company employs open-pit mining and benefits from proximity to ports (simplifying logistics), with cash costs ranking among the lowest in the global bauxite industry. The bauxite has an average alumina content of about 50%, with low impurities (low silicon content), making it suitable for China's high-temperature Bayer process. The company uses reclamation techniques to restore mine ecology and has committed to achieving carbon neutrality in mining operations by 2030. In recent years, it has expanded its resource reserves through acquisitions and exploration while exploring cooperation opportunities in emerging bauxite regions such as Guinea and Indonesia. Current Status of Alumina Capacity Expansion in Indonesia Since 2020, Indonesia has banned the export of raw bauxite ore, mandating local value-added processing (promoting the construction of alumina refineries). The country plans to build over 10 alumina refineries by 2025, with annual capacity exceeding 20 million mt. Indonesia has abundant bauxite reserves (approximately 1.2 billion mt), but the grade is relatively low (alumina content of 40%-45%), necessitating reliance on imported high-grade ore (such as Metro's Australian ore) for blending to improve efficiency. Operational Projects: Projects led by Chinese companies such as Hua Chin Aluminum (part of China Hongqiao Group) and Huafon Group in Indonesia. In 2023, Indonesia's alumina capacity was about 5 million mt, accounting for 5% of the global total. Projects Under Construction/Planning: Investments by international companies such as Rusal and EGA are expected to make Indonesia the world's third-largest alumina producer by 2025 (after China and Australia). Potential Impact of Indonesia's New Capacity on China 1. Changes in Market Competition Landscape • Import Substitution Effect China currently imports about 3 million mt of alumina annually (mainly from Australia). The release of Indonesia's capacity may divert some demand, reducing China's reliance on Australian ore. • Price Pressure Indonesia's low-cost alumina (benefiting from cheap energy and labor) may impact domestic alumina prices in China, squeezing profit margins for high-cost domestic producers. 2. Industry Chain Adjustments • Strategies for Chinese Alumina Companies Accelerate capacity relocation to Indonesia (e.g., Nanshan Aluminum and Chalco's projects in Indonesia) to avoid raw material import tariffs and stay close to resources. Enhance domestic refinery technologies (e.g., low-carbon electrolysis, waste heat recovery) to reduce costs. • Changes in Bauxite Trade Flows Increased local processing demand in Indonesia may reduce its bauxite exports, forcing China to diversify its import sources (Guinea, Australia, Vietnam, etc.). 3. Long-Term Challenges and Opportunities • Challenges Risks related to Indonesia's policy stability (e.g., adjustments to export bans, tax fluctuations) and infrastructure bottlenecks (insufficient port and power supply). • Opportunities China-Indonesia capacity cooperation under the Belt and Road Initiative may foster regional aluminum industry clusters (integrated mining-alumina-aluminum-processing). 4. Response Strategies Sign long-term offtake agreements with major Chinese aluminum companies (e.g., Chalco, Weiqiao) to secure demand; explore equity stakes in Chinese alumina refineries to bind downstream. Provide high-grade Australian bauxite to Indonesian refineries (compensating for local low-grade ore), with supply agreements already in place with multiple Indonesian smelters. Promote "customized blending solutions" to help customers optimize alumina extraction rates; invest in digital logistics systems to improve China-Indonesia shipping efficiency. More in-depth analysis will be unveiled at the Alumina & Aluminum Raw Materials Forum on April 16, 2025! Norman graduated from the Department of Mineral Processing at Imperial College London and holds an EMBA from CEIBS in China. Before joining Metro Mining, Norman served as Sales Manager at Rio Tinto Aluminum, President of Asia Pacific at British Hardware, and President of Asia Pacific at U.S. Unisys. Currently, Norman is the General Manager of Metro Mining's Asia Market Department. AICE 2025 SMM (20th) Aluminum Conference & Expo As a platform focusing on the integration of aluminum mining, smelting, metal processing, and end-use consumption, the event will kick off at the Suzhou International Expo Center from April 16-18, 2025. Alumina & Aluminum Raw Materials Forum As one of the most important forums of AICE 2025, the event on April 16, 2025, will center on topics such as overseas bauxite layout, the global alumina market, energy conservation and carbon reduction in the aluminum industry, Chinese aluminum companies going global, fluid delivery systems, green transformation in the aluminum industry, aluminum price fluctuations, prebaked anode supply structure, graphitized cathode technology, carbon footprint in the aluminum industry, and domestic petroleum coke and calcined coke markets, bringing an unparalleled event to the aluminum industry in the spring of the year.