AM: First of all, thank you for accepting the interview from Asian Metal. Please introduce the production capacity of Guizhou-based smelters, the distribution of it and the what proportion it accounts for in China.

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Mr. Zhang: There are 33 plants having smelting furnaces for brown fused alumina production in Guizhou, with a total production capacity of 900,000tpy, accounting for 30% of the total capacity of China. Specifically speaking, there are sixteen brown fused alumina plants in Guiyang, six plants in Southeastern Guizhou, five plants in Zhunyi, three plants in South Guizhou, one plant in Bijie, one plant in Anshun and one plant in Southwestern Guizhou.

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AM: What are the main features of brown fused alumina production in Guizhou? And what position in abrasive industry does it take?

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Mr. Zhang: Most smelting furnaces for brown fused alumina are tilting furnaces in Guizhou, and the technology of smelting here is in the leading place in China. As far as production capacity is concerned, the quantity of lumps smelted by fixed furnace in Guizhou accounts for around 8.2% of the total amount.

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Moreover, depending on the advantages of abounding natural resources and sufficient senior technical personnel, Guizhou-based smleters can produce brown fused alumina with good quality. Brown fused alumina produced in Guizhou can be used to make ceramic abrasive tools, resin abrasive tools, coated abrasive tools and refractory materials. During more than half-time of this year, most of Guizhou-based smelters run at their full capacity.

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AM: What are the major markets for brown fused alumina produced in Guizhou, and how much is its share?

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Mr. Zhang: Concerning domestic Market, brown fused alumina produced in Guizhou mainly is sold to Pearl River Delta and Yangtze River Delta, having a market share of 25%-30%. Meanwhile， the material is mainly exported to Europe, America and Japan, etc.

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AM: What are the major advantages of Guizhou-based smelters and what difficulties they are facing at present?

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Mr. Zhang: Guizhou is the very place for brown fused alumina production because of abundant natural resources, hydropower and technology personnel in the local place. However, Guizhou-based smelters are facing some awkward problems. For example, smelters here are under a pressure of production cost increase pushed by prices rise of raw materials. The price of bauxite has gone up to RMB1,100/t delivered VAT excluded, and prices of iron filings and anthracite coal also continue to rise. Mineral resources are state-owned, so the government should set prices to avoid private contractors raise the price indiscriminately.

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AM: Can you give some suggestions to Guizhou-based smelters about how to make full use of their advantages and solve the current difficulties?

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Mr. Zhang: Guizhou-based smelters should work at producing abrasive materials with high added value, depending on their advantages, and continue to enhance their status in the market.

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However, they should be careful to avoid blind expansion, and try their best to produce brown fuse alumina with the highest quality in China first. Then research and develop new varieties of fused alumina to consolidate and reinforce the status of fused alumina production as one of the major industries in Guizhou.

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In addition, Guizhou-based producers of brown fused alumina should try their best to save energy and reduce emission during the process of production because this is not only in line with the national policy but also can reduce production cost and raise product competitiveness in the market.

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AM：Thank you for accepting the interview from Asian Metal again.

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Zhang：You are welcome!