CRU aluminum news roundup

Canadian Prime Minister Justin Trudeau defended the move, stating: “We are transforming Canada’s automotive sector to be a global leader in building the vehicles of tomorrow, but actors like China have chosen to give themselves an unfair advantage in the global marketplace, compromising the security of our critical industries and displacing dedicated Canadian autos and metal workers.” Trudeau emphasized that Canada’s actions are a response to these unfair practices and are aimed at protecting Canadian workers and industries.

The tariffs on Chinese-made steel and aluminum are scheduled to take effect on Oct. 15, with a final list of affected products to be announced on Oct. 1. The surtax on Chinese-made EVs will increase to 106.1% on Oct. 1, up from the current 6.1%, according to Canadian media reports. Trudeau highlighted that these measures align with similar actions taken by the US and EU, aiming to address a global challenge collectively.

The Canadian Steel Producers Association (CSPA) and Aluminium Association of Canada welcomed the announcement, stating: “By taking this proactive approach of tariffs directed towards China, Canada is protecting our workers, families, and the communities that these vital industries support. Canada is also taking the important step of aligning with its USMCA trading partners, protecting fortress North America, and refusing to be a point of entry for unfairly traded and high carbon steel and aluminum imports.”

In response, China’s Commerce Ministry criticized Canada’s decision, accusing it of violating WTO rules and engaging in trade protectionism. A spokesperson from the Chinese Foreign Ministry urged Canada to correct its decision and stop politicizing trade issues, asserting that China will take necessary measures to protect the rights and interests of Chinese enterprises.

Additionally, Canada’s Deputy Prime Minister, Chrystia Freeland, announced a 30-day consultation period regarding potential tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals, and solar panels. Freeland asserted that China’s state-directed policies of overcapacity and oversupply threaten Canada’s EV sector, which is crucial for future growth.

Capral and Tindo Solar to jointly establish new solar gigafactory

Capral, Australia’s largest extruder and distributor of aluminum products, recently entered into a supply deal with Tindo Solar amid plans for a $100 million “gigafactory”. The partnership is set to benefit Tindo Solar as it scales its production of solar panels to meet demand via an expansion of its Adelaide facility. Tindo Solar currently operates a 150-MW manufacturing facility at Mawson Lakes in Adelaide and, earlier this year, announced plans for a facility capable of producing at least 1 GW of premium quality panels per year. While the location of the gigafactory has yet to be identified, Tindo is currently scoping potential sites in NSW, Queensland, and Victoria. The proposed $100-million facility will create 250 jobs and be capable of producing 7,000 panels per day.

The gigafactory is being supported by the federal government’s Solar Sunshot program, which has allocated $1 billion for the solar PV manufacturing sector over the next decade. “This venture is more than just a significant step for Tindo; it represents a milestone for the entire Australian manufacturing sector, showcasing our potential to lead in sustainable energy solutions and build a more resilient local supply chain,” said Luke Hawkins, Capral’s divisional general manager of industrial and supply chain.

South32 reports wider losses

In other industry news, diversified miner South32 reported a net loss attributable to shareholders of $203 million for the fiscal year ending in June, up from a loss of $173 million the previous year. The increased loss is largely due to impairment expenses, including a $388 million post-tax charge for the Worsley alumina refinery in Australia and $248 million for the Cerro Matoso nickel operation in Colombia.

Despite these setbacks, Australia-based South32 reported a reduction in its net loss due to a $139 million after-tax gain from the sale of its Illawarra metallurgical coal business to Golden Energy and Resources and M Resources. CEO Graham Kerr noted that the sale simplifies the company’s portfolio, strengthens its balance sheet, and unlocks capital for investment in growth projects.

Looking ahead, South32 plans to increase its overall aluminum production by 17% and copper production by 15%, driven by higher grades at its Sierra Gorda mine in Chile. The company is also preparing for a phased restart of its Groote Eylandt Island manganese mine, which was damaged by Cyclone Megan earlier in the year. The mine is expected to produce 1 million tons of ore this financial year, with a target of 3.2 million tons by fiscal 2026.

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