The bauxite ores in Pingguo County, Guangxi were discovered in the 1970s. However, they contained a large amount of iron trioxide, and China lacked the technology and money to process them into alumina, which required high temperature, high alkali, and high pressure.
On the morning of September 13, 1986, Deng Xiaoping was briefed on the construction of key national projects. The situation was that three projects of steel, petrochemical engineering and aluminum required funds. Funds for the first two were obtained, while those for the aluminum project was still in need. Learning the situation, Deng decided that "bauxite ores in Pingguo must be explored."
After that, the bauxite ore project in Pingguo advanced smoothly. In September 1987, Pingguo Aluminum Company was established, with the phase I of the project started in 1991, and completed and put into operation at the end of 1995.