Due to repeated environmental checks and a recent bauxite mining accident at Sanmenxia, Henan’s bauxite output has dropped to a record low. The majority of local mines have been forced to suspend operations, including captive mines owned by large refiners Jinjiang, East Hope and Wanji. At present, only SOEs’ mines such as Chalco mines are operational in Henan; other privately owned small-medium mines with mining/environmental permission only operate from time to time, resulting in a significant shortfall in ore supply. Most traders have to seek bauxite supply from Shanxi, Guizhou and Guangxi to fill the supply gap. At present most low-grade bauxite that flows to the Henan market is from Shanxi and high-grade bauxite is from southwest regions such as Guizhou and Guangxi.