Gold has overtaken US Treasuries as the largest component of global central bank reserves for the first time since the mid-1990s, marking a significant shift in the structure of the international monetary system, Bloomberg reports.

[Guinea Pulls EGA’s Bauxite Permit and reassigned it to a new state-owned company] Guinea’s military government has cancelled Emirates Global Aluminium’s 690 km² Guinea Alumina Corp licence—holding about 400 Mt of bauxite—and reassigned it to new state-backed Nimba Mining, citing mining-code violations. The concession had shipped ~14 Mt in 2022, but exports fell to 10.8 Mt in 2024 after authorities suspended operations last October for missing refinery-construction commitments. The seizure tightens supply from the world’s No. 2 bauxite producer and marks another step in West Africa’s drive to reclaim strategic mineral assets; EGA has yet to respond.

On June 2 (Monday), industry experts stated that Indonesia's progress in converting illegal tin mining assets into legal and productive operations could help alleviate the global supply tightness of this battery metal. The growing popularity of electric vehicles (EVs) has increased demand for tin, a negative electrode material that enhances the performance of lithium-ion batteries. Indonesia is the world's second-largest producer of refined tin, but illegal mining has been a major issue in the industry. According to local media reports, in April this year, Indonesian authorities seized five smelters suspected of involvement in illegal mining. These smelters will now be managed by the state. The Attorney General's Office stated that the seizure was not intended to halt tin ore exploration, and it is expected that mining operations will resume soon under new management. The crackdown on illegal mining has constrained Indonesia's 2024 production, exacerbating global supply tightness. Experts told S&P Global Commodity Insights that the expected restart of smelters would help increase supply to the tight market. "We are currently seeing a recovery in Indonesia's production... We expect this recovery to continue into 2025 and beyond," Freddie Mitchell, a market intelligence analyst at the International Tin Association (ITA), said in an email. According to the ITA, the seized smelters accounted for half of the country's refining capacity. ITA data shows that due to the seizures, Indonesia's refined tin production in 2024 fell by 30.7% to 49,900 mt, the lowest production level in over two decades. Before authorities tightened scrutiny of the industry, the country's annual refined tin production reached at least 72,000 mt in 2019 and from 2021 to 2023. The ITA expects that with the conclusion of the Indonesian government's investigations, Indonesia's refined tin production will rise to 57,000 mt in 2025. Inav Haria Chandra, a research analyst at PT OCBC Sekuritas Indonesia, said that Timah controls over 90% of Indonesia's permitted tin mining areas, but for years the company's production has only accounted for 30% to 40% of Indonesia's tin exports. Changes are imminent in Indonesia's tin industry. The government has also expanded the SIMBARA tracking platform to include tin, aiming to trace the origin of this mineral from mine to export. "This is the toughest action we've seen in years, and the government has started cleaning up the industry," Inav said. However, it is still too early to say whether Indonesia can completely eliminate illegal tin mining. "The government's recent crackdown is a positive step," Thomas Radityo, an equity research analyst at Ciptadana Capital in Indonesia, said in an email. "However, for these efforts to have a lasting impact, sustained and effective enforcement will be crucial, which has historically been a challenge." Despite the expected recovery of Indonesia's supply, regulatory hurdles have limited producers' ability to increase production. The new RKAB system, under which the Indonesian government approves domestic mining production and sales quotas, has strengthened oversight of miners but also slowed down the approval process. Indonesian miners are also reconsidering new investments due to rising costs caused by recent increases in mineral royalties. It is expected that developments in Indonesia will exacerbate volatility in the tin market. Amid this volatility, the ITA forecasts a 7,600 mt supply deficit in the global refined tin market in 2025. Mitchell from the ITA said, "Despite the recovery of Indonesia's supply, there are still supply disruptions elsewhere." (Wenhua Comprehensive)

SMM Alumina Morning Comment on May 9 Futures Market: Overnight, the most-traded alumina 2509 futures contract opened at 2,800 yuan/mt, with a high of 2,857 yuan/mt, a low of 2,780 yuan/mt, and closed at 2,854 yuan/mt, up 99 yuan/mt or 3.58% from the previous close, with open interest at 282,000 lots. Ore: As of May 8, the SMM Import Bauxite Index was reported at $77.98/mt, down $0.26/mt from the previous trading day. The SMM Guinea Bauxite CIF average price was reported at $76/mt, down $1/mt from the previous trading day. The SMM Australia Low-Temperature Bauxite CIF average price was reported at $80/mt, unchanged from the previous trading day. The SMM Australia High-Temperature Bauxite CIF average price was reported at $72/mt, unchanged from the previous trading day. Alumina Spot: In Shandong, 5,000 mt of alumina was traded at 2,880 yuan/mt. In Henan, 2,000 mt of alumina was traded at 2,940 yuan/mt. In Guizhou, 5,000 mt of alumina was traded at 3,000 yuan/mt. Industry News: Alumina Port Inventory: According to SMM statistics on May 8, the total alumina inventory at domestic ports was 37,000 mt, an increase of 18,000 mt from the previous week. Weekly Alumina Production Dynamics: According to SMM data, as of Thursday this week, the total installed capacity of metallurgical-grade alumina in China was 109.22 million mt/year, with a total operating capacity of 87.02 million mt/year. The national weekly alumina operating rate decreased by 0.07 percentage points WoW to 79.67%. Alumina refineries experienced varying changes in operating capacity, with maintenance-related production cuts and production resumptions coexisting. The total national operating capacity decreased by 80,000 mt/year WoW. Guinea Plans to Revoke EGA's Mining License. Reuters reported on May 7, 2025, that sources revealed the Guinean government had initiated procedures to revoke the mining license of Emirates Global Aluminium (EGA) in the country. EGA operates one of the largest bauxite mines in Guinea through its subsidiary, Guinea Alumina Corporation (GAC). Since October 2024, GAC's export and mining activities have been suspended by the government. EGA has been operating in Guinea since 2019 and exported approximately 14 million mt of bauxite in 2022. Affected by the suspension, its exports fell to 10.8 million mt in 2024. The mining area covers 690 square kilometers, with estimated reserves of approximately 400 million mt of bauxite. Guinea's move reflects the growing trend of resource-rich countries in the region strengthening their control over minerals, particularly as military regimes in Guinea, Mali, Niger, and Burkina Faso push for revisions to mining laws, seizures of mineral assets, and increased state revenue shares. Spot-Futures Price Spread Daily Report: According to SMM data, on May 8, the SMM Alumina Index had a premium of 126 yuan/mt against the latest transaction price of the most-traded contract at 11:30. Warrant Daily Report: On May 8, the total registered volume of alumina warrants decreased by 9,895 mt from the previous trading day to 249,800 mt. In Shandong, the total registered volume of alumina warrants remained unchanged from the previous trading day at 601 mt. In Henan, the total registered volume of alumina warrants remained unchanged from the previous trading day at 3,001 mt. In Guangxi, the total registered volume of alumina warrants decreased by 5,104 mt from the previous trading day to 22,800 mt. In Gansu, the total registered volume of alumina warrants remained unchanged from the previous trading day at 16,800 mt. In Xinjiang, the total registered volume of alumina warrants decreased by 4,791 mt from the previous trading day to 206,600 mt. Overseas Market: As of May 8, 2025, the FOB Western Australia alumina price was $348/mt, with an ocean freight rate of $20.50/mt. The selling price of the USD/CNY exchange rate was around 7.26. This price translates to approximately 3,102 yuan/mt for the external selling price at major domestic ports, which is 206 yuan/mt higher than the domestic alumina price. The alumina import window remained closed. Summary: This week, alumina enterprises experienced both increases and decreases in operating capacity, with the total operating capacity slightly decreasing by 80,000 mt/year. It is expected that some alumina enterprises will conduct maintenance in the following period, while new alumina capacity is anticipated to continue commissioning and ramp up production. In the short term, the operating capacity of alumina may fluctuate. Recently, downstream feedback indicates that spot cargo availability is tight in some regions. With suppliers standing firm on quotes, spot prices may rebound slightly. However, on the cost side, bauxite prices have fallen significantly compared to the previous period, weakening the cost support. Overall, the alumina market is influenced by a mix of bullish and bearish factors, and prices are expected to fluctuate in the short term. [The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make cautious decisions and should not rely on this information to replace their own independent judgment. Any decisions made by clients are not related to SMM.]

The State Council Information Office held a press conference at 10 a.m. today, inviting Wang Zhenjiang, Vice Minister of the Ministry of Justice, and leaders from the Legislative Affairs Commission of the Standing Committee of the National People's Congress, the National Development and Reform Commission (NDRC), the National Financial Regulatory Administration, and the All-China Federation of Industry and Commerce to introduce the relevant situation of the Law of the People's Republic of China on Promoting the Private Economy and answer questions from journalists. Wang Zhenjiang, Vice Minister of the Ministry of Justice: The Law on Promoting the Private Economy Sets Multiple "Firsts" At the press conference held by the State Council Information Office, Wang Zhenjiang, Vice Minister of the Ministry of Justice, stated that the Law on Promoting the Private Economy has set multiple "firsts", such as being the first time to incorporate the principle of "unwaveringly consolidating and developing the public sector while encouraging, supporting, and guiding the development of the non-public sector" into law, and the first time to stipulate in law that promoting the sustained, healthy, and high-quality development of the private economy is a major policy that the country will adhere to in the long term. Wang Zhenjiang said that this fully demonstrates the firm determination of the CPC Central Committee to promote the development and growth of the private economy, further clarifies to society that developing the private economy is a consistent policy of the Party and the state that will be adhered to in the long term, and will surely further stimulate the endogenous driving force and creative vitality of the private economy, boost the development confidence of operators in the private economy, inspire their entrepreneurial enthusiasm and pioneering spirit, cultivate a deep sense of patriotism and national pride, and strengthen their resolve to be builders of the cause of socialism with Chinese characteristics and promoters of Chinese-style modernization. Fair competition, standardized business operation service guarantees, rights and interests protection, etc., are prominent issues that all parties believe the private economy faces in its development. Wang Zhenjiang stated that promoting the development of the private economy involves a wide range of areas. To determine which issues need to be addressed in the current legislation, which measures need to be incorporated into the law, and which need to be stipulated in the supporting regulations in the next step, it is necessary to extensively listen to opinions from all sides and gather wisdom from various quarters. Wang Zhenjiang introduced that during the drafting and formulation process of the Law on Promoting the Private Economy, the working group has consistently adhered to the principle of open legislation and drawing on collective wisdom. After repeated discussions, they ultimately focused on issues such as fair competition, investment and financing, promoting scientific and technological innovation, standardized business operation service guarantees, and rights and interests protection, which are also widely recognized as prominent issues facing the development of the private economy. A foundational law is not necessarily the better the more detailed it is. The Law on Promoting the Private Economy leaves room for future practical development. Wang Zhenjiang stated that many articles in the Law on Promoting the Private Economy are highly targeted. For example, the clauses on addressing "back-to-back" practices and regulating administrative law enforcement are concise but carry significant weight. Of course, as a foundational law, it is not necessarily the better the more detailed its provisions are. Objective practical developments change rapidly, and overly detailed regulations may sometimes hinder the development of practice. Wang Zhenjiang said that during the legislative process of the Law on Promoting the Private Economy, the principle of balancing the present and the future has been consistently adhered to, leaving room for future practical development.For example, the law stipulates that relevant departments under the State Council shall coordinate the research and formulation of policies and measures to promote private economic investment, and that people's governments at all levels and their relevant departments shall establish government-enterprise communication mechanisms. This not only clarifies the establishment of systems but also leaves room for the next step of introducing supporting measures and refining implementation initiatives in line with actual conditions. The Ministry of Justice will continue to standardize administrative law enforcement practices and establish enterprise contact points for administrative law enforcement supervision. Wang Zhenjiang stated that in response to the widespread complaints about various law enforcement irregularities in some localities and departments, such as arbitrary fees, fines, inspections, and seizures, as well as illegal cross-regional law enforcement and profit-driven law enforcement, the Law on Promoting the Private Economy has made clear provisions. Wang Zhenjiang stated that in the next step, the Ministry of Justice will implement the relevant requirements of the Law on Promoting the Private Economy and continue to standardize administrative law enforcement practices. It will accelerate the construction of legal supporting systems and mechanisms, promote the establishment of a complaint and reporting handling mechanism for administrative law enforcement violations, promptly accept and handle complaints and reports related to administrative law enforcement involving enterprises in accordance with the law. The judicial administrative organs will establish enterprise contact points for administrative law enforcement supervision, promptly listen to the opinions and suggestions of various business entities on administrative law enforcement involving enterprises, and implement a system of administrative law enforcement supervisors. The Ministry of Justice will urge all regions and departments to increase their efforts in investigating and punishing administrative law enforcement violations. Wang Zhenjiang stated that as the administrative law enforcement supervision agency of the State Council, the Ministry of Justice is responsible for coordinating and organizing special nationwide actions to standardize administrative law enforcement involving enterprises. Local judicial administrative organs at all levels, as the administrative law enforcement supervision agencies of their respective governments, are responsible for organizing and implementing special actions in their respective regions. The Ministry of Justice will take the opportunity of the promulgation and implementation of the Law on Promoting the Private Economy to urge all regions and departments to increase their efforts in investigating and punishing administrative law enforcement violations and strengthen the investigation, rectification, and correction of problems. Resolutely curb profit-driven law enforcement and effectively protect the legitimate rights and interests of private economic organizations and their operators in accordance with the law. Wang Zhenjiang stated that in the next step, efforts will be made to promote the establishment of a complaint and reporting handling mechanism for administrative law enforcement violations, promptly accept and handle complaints and reports related to administrative law enforcement involving enterprises in accordance with the law. Judicial administrative organs will establish enterprise contact points for administrative law enforcement supervision and promptly listen to the opinions and suggestions of various business entities on administrative law enforcement involving enterprises. A system of administrative law enforcement supervisors will be implemented, inviting deputies to the National People's Congress, members of the Chinese People's Political Consultative Conference, people's supervisors, experts and scholars, lawyers, journalists, and others to participate in supervision. Resolutely curb profit-driven law enforcement and effectively protect the legitimate rights and interests of private economic organizations and their operators in accordance with the law. Urge all regions and departments to increase their efforts in investigating and punishing administrative law enforcement violations and strengthen the investigation, rectification, and correction of problems. Wang Zhenjiang stated that in the next step, the Ministry of Justice will take the lead in carrying out special actions to standardize administrative law enforcement involving enterprises.The Central Economic Work Conference last year proposed launching a special campaign to standardize law enforcement involving enterprises. On April 25 this year, the meeting of the Political Bureau of the CPC Central Committee once again emphasized the need to solidly carry out this special campaign. The Ministry of Justice, as the administrative law enforcement supervision authority under the State Council, is responsible for coordinating and organizing the nationwide special campaign to standardize administrative law enforcement involving enterprises. Local judicial administrative organs at all levels, as the administrative law enforcement supervision authorities of their respective governments, are responsible for organizing and implementing the special campaign in their respective regions. The Ministry of Justice will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council. Taking the opportunity of the introduction and implementation of the law on promoting the private economy, it will urge all regions and departments to intensify efforts to investigate and handle illegal administrative law enforcement activities, strengthen the identification, rectification, and correction of problems, and resolutely ensure that they are thoroughly addressed. At the same time, it will conduct spot checks on key regions, areas, and issues, conduct periodic assessments, analyses, and evaluations of the rectification results, and, when necessary, escalate the handling of issues that have drawn strong reactions from enterprises and the public, and supervise the rectification of those that have not made sufficient progress. It will promptly promote and share good practices and experiences formed during the work, and, depending on the situation, conduct interviews, issue circulars, and expose those that have not performed well in the rectification work. Accelerate the Research and Formulation of Regulations on Administrative Law Enforcement Supervision to Establish and Improve a Long-Term Mechanism for Supervising Administrative Law Enforcement Involving Enterprises Wang Zhenjiang stated that the next step is to accelerate the research and formulation of regulations on administrative law enforcement supervision and establish and improve a long-term mechanism for supervising administrative law enforcement involving enterprises. The Ministry of Justice will take the implementation of the requirements of the law on promoting the private economy as a starting point and focus on establishing and improving a long-term mechanism for supervising administrative law enforcement involving enterprises. It will expedite the research and drafting of regulations on administrative law enforcement supervision. In response to common issues in administrative law enforcement, it will further improve the institutional mechanisms, supervisory procedures, and accountability systems for administrative law enforcement supervision, providing solid legal guarantees and institutional support for strengthening administrative law enforcement supervision, standardizing administrative law enforcement behaviors, and protecting the legitimate rights and interests of various business entities, including private economic organizations, in accordance with the law. Wang Ruihe, Deputy Director of the Legislative Affairs Commission of the Standing Committee of the National People's Congress (NPC): Legislation Demonstrates that the Basic Policies and Guidelines for the Development of the Private Economy Will Not and Cannot Change Wang Ruihe, Deputy Director of the Legislative Affairs Commission of the Standing Committee of the NPC, stated at a press conference held by the State Council Information Office that the formulation of the law on promoting the private economy fully demonstrates that the basic policies and guidelines of the Party and the state for the development of the private economy will not and cannot change. It will undoubtedly contribute to a more complete legal system and a more robust and effective guarantee system to support the high-quality development of the private economy. Zheng Bei, Deputy Director of the National Development and Reform Commission (NDRC): Enhancing Development Certainty through the Stability of the Rule of Law Serves as a Reassurance for Private Enterprises to Focus on Development Zheng Bei, Deputy Director of the National Development and Reform Commission (NDRC), stated at a press conference held by the State Council Information Office that the law on promoting the private economy enhances development certainty through the stability of the rule of law, serving as a reassurance for private enterprises to focus on development.Meanwhile, the Private Economy Promotion Law actively responds to the concerns of private enterprises and makes institutional arrangements. For instance, in terms of fair participation in market competition, the law stipulates that the state implements a unified national negative list system for market access. In terms of equal access to production factors, the law stipulates that the state ensures that private economic organizations have equal access to funds, technology, human resources, data, land, and other factors, as well as public service resources, in accordance with the law, treating all equally. The long-term mechanism for private enterprises to participate in major national projects is being improved, and this year, high-quality projects with a total investment scale of approximately 3 trillion yuan will be launched. Zheng Bei stated that the Private Economy Promotion Law embodies the principles of equal treatment, fair competition, equal protection, and common development throughout its text. The National Development and Reform Commission (NDRC) will focus on promoting its implementation by breaking down barriers, expanding opportunities, and optimizing services. Among these, in terms of expanding opportunities, the NDRC supports private enterprises in actively participating in the "implementation of major national strategies and the development of security capabilities in key areas" and the "program of large-scale equipment upgrades and consumer goods trade-ins," and is accelerating the improvement of the long-term mechanism for private enterprises to participate in major national projects. The NDRC has launched a batch of major projects in fields such as nuclear power and railways. Currently, the shareholding ratio of private capital in some nuclear power projects has reached 20%. In the fields of industrial equipment renewal and recycling, the capital contribution of some private enterprises exceeds 80%. Zheng Bei disclosed that this year, high-quality projects with a total investment scale of approximately 3 trillion yuan will also be launched in key areas such as transportation, energy, water conservancy, new-type infrastructure, and urban infrastructure. From January to April this year, the bid-winning rate of private enterprises increased by 5 percentage points YoY. Zheng Bei stated that the Private Economy Promotion Law embodies the principles of equal treatment, fair competition, equal protection, and common development throughout its text. The NDRC will focus on promoting its implementation by breaking down barriers, expanding opportunities, and optimizing services. Among these, in terms of breaking down barriers, the NDRC, in conjunction with relevant departments, recently issued a new version of the negative list for market access. Simultaneously, it has launched a campaign to clean up and rectify market access barriers, actively promoting fair participation of private enterprises in tenders and bids. Zheng Bei stated that from January to April this year, the bid-winning rate of private enterprises increased by 5 percentage points compared to the same period last year. For projects with an investment of less than 100 million yuan, the number of awarded projects by private enterprises accounted for over 80%. Going forward, if private enterprises encounter market access barriers, they can log in to the relevant column on "Building a Unified National Market" on the NDRC's official website to report the issue. The NDRC will work with relevant parties to conduct thorough and timely investigations and handle the issues. A batch of supporting systems for the Private Economy Promotion Law are being accelerated in implementation. Zheng Bei stated that during the legislative process of the Private Economy Promotion Law, the NDRC, in conjunction with relevant departments, planned ahead and simultaneously carried out the establishment, revision, abolition, and interpretation of relevant systems. A batch of supporting systems has already been introduced.She stated that a batch of supporting systems is being accelerated for implementation. Meanwhile, many localities are actively improving relevant supporting measures in areas such as promoting technological innovation, service guarantees, and rights protection, based on local realities. Cong Lin, Deputy Director of the Financial Regulatory Authority: 74 Private Equity Funds Established to Support Investment in Technology Innovation Enterprises Cong Lin, Deputy Director of the Financial Regulatory Authority, stated at a press conference of the State Council Information Office that the focus of financial services for key areas and critical links of private enterprises is on "one industry, one policy," providing targeted financial services based on industry characteristics. Cong mentioned that in the fields of high-tech and emerging industries where private enterprises have performed remarkably in recent years, the Financial Regulatory Authority has been improving the financial service model for technology, primarily by promoting the integration of investment and financing, conducting pilot projects for equity investment by financial asset investment companies, and supporting investment in technology innovation enterprises. Currently, 74 private equity funds have been established, and technology enterprise merger and acquisition loans have been implemented in 18 pilot cities to support the smooth capital circulation of technology enterprises. Average Annual Growth Rate of Private Enterprise Loans Over the Past 5 Years Exceeds Overall Loan Growth by 1 Percentage Point Cong stated that the loan issuance to private enterprises by banking financial institutions has been steadily increasing. Over the past five years, the average annual growth rate of private enterprise loans has been 1 percentage point higher than that of overall loans. By the end of Q1 this year, the balance of private enterprise loans reached 7.607 trillion yuan, up 7.41% YoY; the balance of inclusive small and micro enterprise loans reached 3.53 trillion yuan, up 12.5% YoY. 12.6 Trillion Yuan in New Loans Issued to Small and Micro Entities Through the Financing Coordination Mechanism Cong stated that the Financial Regulatory Authority has collaborated to create an information sharing mechanism. Offline, the Financial Regulatory Authority, together with the National Development and Reform Commission (NDRC), established a financing coordination mechanism to support small and micro enterprises, promoting the direct and rapid delivery of credit funds to the grassroots with appropriate interest rates. Through this mechanism, 12.6 trillion yuan in new loans has been issued to small and micro entities, with an average interest rate of 3.66%. Online, the authority has promoted the establishment of credit information sharing and comprehensive financial service platforms in multiple regions, allowing data to do the running while reducing the burden on enterprises and banks, using data information to support banks in issuing credit loans. By the end of Q1, the balance of credit loans to private enterprises reached 1.81 trillion yuan, up 15.4% YoY. Fang Guanghua, Vice Chairman of the All-China Federation of Industry and Commerce: Will Cooperate with Functional Departments to Issue Supporting Policies to Continuously Empower Private Enterprise Production Activities Fang Guanghua, Vice Chairman of the All-China Federation of Industry and Commerce, stated at a press conference of the State Council Information Office that the Federation will cooperate with functional departments to issue supporting policies and ensure the implementation of legal provisions.Meanwhile, efforts will be made to foster a cordial and clean government-business relationship, enhance service standards, and continuously empower the production activities of private enterprises. Fang Guanghua stated that the All-China Federation of Industry and Commerce should also actively participate in political consultation and democratic supervision. In particular, it should optimize the work of private enterprises in evaluating the business environment, promptly collect and reflect new situations and problems encountered by private enterprises during the implementation of laws, and urge law enforcement departments to optimize relevant policies and measures.

[Huawei and Zhuzhou Converter Shortlisted for Sinopec Inverter Framework Tender] On March 3, the tender results for PV inverter framework agreement procurement for the Guangxi Hepu Fishery-Solar Complementary PV Power Generation Project, organized by Sinopec Materials and Equipment Department (International Business Company) and New Star Company, were announced. Huawei Digital Power Technologies Co., Ltd. and Zhuzhou Converter Technology National Engineering Research Center Co., Ltd. were shortlisted. (Polaris Solar PV Network)