Lüliang City is effectively promoting the integrated development of coal, power, and aluminum industries.
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Industry News
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2025/11/17
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Lüliang City integrates coal, power, and bauxite resources, providing a solid foundation for building a domestically and internationally competitive aluminum industry base. In recent years, Lüliang City has adhered to high-starting-point planning and high-standard positioning, promoting development across the entire industrial chain. Supported by advanced technologies and leveraging resource integration as a key strategy, the city has accelerated the development of primary aluminum smelting and aluminum processing. It has also vigorously promoted integrated development of coal, power, and aluminum industries, initially establishing four aluminum industrial parks in Xingxian, Xiaoyi, Jiaokou, and Liulin. These parks have now achieved a production capacity of 8.93 million tons of bauxite, 13.8 million tons of alumina, and 430,000 tons of primary aluminum per year.
Lüliang City integrates coal, power, and bauxite resources, providing a solid foundation for building a domestically and internationally competitive aluminum industry base. In recent years, Lüliang City has adhered to high-starting-point planning and high-standard positioning, promoting development across the entire industrial chain. Supported by advanced technologies and leveraging resource integration as a key strategy, the city has accelerated the development of primary aluminum smelting and aluminum processing. It has also vigorously promoted integrated development of coal, power, and aluminum industries, initially establishing four aluminum industrial parks in Xingxian, Xiaoyi, Jiaokou, and Liulin. These parks have now achieved an annual production capacity of 8.93 million tons of bauxite, 13.8 million tons of alumina, and 430,000 tons of primary aluminum.
Lüliang City has strengthened top-level design by formulating the "Implementation Plan for Lüliang City’s Aluminum Industry Development" and issuing the "Opinions on Accelerating the High-Quality Development of the New Materials Industry for Aluminum, Magnesium, and Copper." Currently, Lüliang has preliminarily established a service-oriented incremental distribution network, and a favorable electricity pricing environment has largely taken shape.
Standardize the development and allocation of resource utilization. The city’s cumulative proven reserves of bauxite resources amount to 692 million tons, with remaining reserves standing at 649 million tons, accounting for 45.7% of the province’s total reserves. Currently, there are 27 bauxite mining rights (including delineated mining areas) within the city’s jurisdiction—24 mining rights and 3 delineated mining areas—covering a total mining area of 99.38 square kilometers. These rights have already utilized resource reserves totaling 213 million tons, with an annual production capacity of 8.93 million tons. Lüliang City has rigorously implemented the spirit of documents such as the “Shanxi Bauxite Resource Development and Utilization Plan” and the “Notice on Issuing the Implementation Plan for Rectifying and Standardizing the Order of Bauxite Resource Development and Utilization in Lüliang City.” Adhering to the principle of “comprehensive exploration, integrated development, and comprehensive utilization, harmonizing economic, social, resource, and environmental benefits,” Lüliang City has strengthened supervision and management of bauxite resource extraction. It has legally shut down mining enterprises that damage the environment, cause severe pollution, or fail to meet safety production standards, thereby effectively protecting and making optimal use of bauxite resources. Furthermore, Lüliang City strongly supports Shanxi Huaxing in obtaining mining rights for the first-phase exploration-to-mining conversion of three bauxite deposits and associated coal resources, and is allocating bauxite resources from nine mining areas—including Xingxian—to companies such as Chinalco China Resources.
Intensify efforts to attract investment. We have introduced 29 preferential policies aimed at attracting investment. Focusing on the goal of "aluminum melt not leaving the plant," and leveraging Zhongrun Company's high-quality "aluminum melt" resources as well as Lüliang’s local power grid’s advantage of low electricity prices, we have raised the entry threshold and attracted seven mid-to-high-end aluminum-magnesium deep-processing projects with processing fees exceeding 5,000 yuan per ton and total investments totaling 8.6 billion yuan, thereby achieving the goal of "aluminum melt not leaving the plant." At the same time, we are advancing the construction of the Shanxi Energy Investment Sino-German Lightweight Aluminum-Magnesium Components Project, with a total investment of 1 billion yuan. To effectively address the challenge of solid waste management within the park, we have also introduced the Chenggong Solid Waste Comprehensive Utilization and Disposal Center Project, with a total investment of 1 billion yuan.
Multiple measures are being taken to reduce electricity costs for aluminum enterprises. First, we are continuously deepening the reform of the local power grid. We are strictly implementing the "Provisional Measures for Electricity Price Subsidies for the Local Power Grid in the Lüliang Aluminum-Magnesium New Materials Industrial Park," ensuring that the target electricity price of 0.3 yuan per kilowatt-hour is achieved. We are making every effort to strengthen the structure of the local grid network; Phase II of the local power grid project has fully commenced, and the grid's capacity to support load will increase to 800,000 kilowatts, sufficient to meet the electricity demand of the first-phase Zhongrun 500,000-ton electrolytic aluminum project. Second, we are taking multiple measures to implement electricity price reductions. According to the "Provisional Measures for Electricity Price Subsidies for the Local Power Grid in the Lüliang Aluminum-Magnesium New Materials Industrial Park," we are offsetting the gap between the actual household electricity price and the electricity price charged by Chinalco Huaren through four measures: long-term coal-fired power agreements, increasing the number of operating hours for power generation, adopting a tiered transmission and distribution pricing system, and providing subsidies for combined heat and power generation. At the same time, we are establishing a mechanism linking coal-fired power prices with aluminum prices. Third, we are vigorously promoting the construction of power supply points within the local grid. Marked by the simultaneous approval and commissioning of two 350,000-kilowatt units at the Jingneng Power Plant in Linxian County, the number of power supply points within the local grid can be expanded to two, doubling its power supply capacity. These two newly commissioned units will be connected nearby to the State Grid Daju Substation, following the operational model of the Jinneng Datuhhe Power Plant and integrating into the Lüliang local power grid, thereby prioritizing the electricity needs of users within the local grid.
Keywords:
Jiasheng
Carbon