BEIJING, May 10 Reuters Erratic rainfall in China39;s southwest is frustrating a multibilliondollar push to green an aluminium industry that accounts for almost 60 of global output and, by some estimates, emits more carbon dioxide than Australia.
Lured by official promises of cheap hydropower, China Hongqiao Group and a handful of other coalreliant smelters several years ago began moving 6.56 million metric tons of capacity about 15 of China39;s total from the northern rust belt to the mountainous and ethnically diverse Yunnan province, known for tea, coffee and wild mushrooms.
The opportunity to cut electricity bills and help the world39;s top polluter tackle global warming seemed like a safe bet. But as Yunnan39;s rivers and reservoirs dwindled amid poor rainfall, which some experts attribute to climate change, so did the reliability of electricity.
Reuters interviews with almost two dozen industry figures and analysts, as well as company filings and official documents, found insufficient hydropower has meant that only a little over half of the planned aluminium capacity shift has materialised. Some smelters are slowing or scaling back their alreadydelayed plans and others are seeking alternative locations.
The power cuts in the past two years have made it clear that Yunnan can39;t be sustained as a major producing region, said one Yunnan industry figure who, as with others, spoke on the condition of anonymity due to the issue39;s sensitivity.
Despite growing…