
Global bauxite production is expected to rebound this year with new projects coming up in Guinea and Australia and with some expansions across India and Indonesia.
Consultancy group Fitch Solutions notes that Australia is currently holding 12 of the 29 new bauxite projects, which is more than any other country. The consultancy firm forecasts that bauxite production in Australia will increase by 15 per cent in 2019, compared with 4 per cent in 2018.
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“While bauxite accounts for less than 5% of Australian mining value, the country is the global top producer, accounting for an estimated 28.8% of total global output as of 2018. Australia will remain a top bauxite exporter to China, although the country may lose some market share over the coming quarters to returning Indonesian supply,” reported Fitch.
Guinea is with the next highest number of new projects, according to Fitch. The country is reportedly holding seven new bauxite projects, which will expectedly boost production from 59 million tonnes in 2018 to 82.3 million tonnes by 2028.
In Indonesia, bauxite production is estimated to grow at an annual average of 8.1 per cent during 2019-2028. Fitch projects the bauxite output in the country will increase from 6.5 million tonnes this year to 11.6 million tonnes by 2029.
Fitch also predicts that India’s bauxite production will grow to serve growing demand from the domestic aluminium industry, supported by government ordinance. In February 2018, the Odisha state Cabinet approved a long-term bauxite linkage policy that will help alumina refineries.
Fitch further highlighted several key projects such as Alufer Mining’s new production at the Bel Air project in Guinea to produce 5.5 million tonnes of bauxite per year, which will further ramp up to 10 million tonnes per year over a 15-year period. Emirates Global Aluminium (EGA) $1.4 billion bauxite project by subsidiary Guinea Alumina Corporation (GAC) will begin exports in the second half of 2019 and produce 12 million tonnes of bauxite annually.
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