One main factor that is held responsible for the crisis of aluminium industry anywhere in the world is the high energy consumption associated with aluminium production. It is true that a lot more energy is required to make Aluminium than to make steel. The overall energy picture looks much healthier if your energy source is not coal but hydroelectricity. A number of aluminium producers are seeking out places with emissions-free hydro-electricity to set up aluminum smelters anticipating the difficult future of an industry dependent on coal-fired power. It is difficult to maintain because of high energy cost and environment hazards. One more reason why Kurri Kurri is finding it hard to cope with the energy cost is that they can no more avail the subsidised electricity rate from the government as the contracts have come to an end. Hydro’s own smelter in Qatar is producing about 585,000 tonnes a year, more than three times Kurri Kurri‘s top production capacity and there is no reason in continuing with a loss making plant.
Australia has a rich source of bauxite which makes aluminium production all the more convenient, but instead it is exporting to China and other nations. The Australian economy is also affected by Chinese producers, which have been accused of oversupplying the world market with subsidized aluminium. Good profits are expected from high selling prices and low production costs. For Australian aluminium industry, China has somehow damaged the equation. China’s continued demand for Australian raw material is pushing up the dollar and with it the local production cost is increasing. There is no doubt that Chinese production is heavily subsidised and the hugely expanding Chinese production is keeping the global aluminum price in check.

The closure of Kurri Kurri smelter is compelling the industry experts to look for a solution. The Australian Workers’ Union suggests the Federal Government to provide assistance to the jobless workers and rescue the aluminium industry as a whole. The AWU is meeting with the Federal Government with five point strategy for the future of the Australian aluminium industry. NORSK Hydro‘s decision to close the Kurri Kurri smelter was more or less expected. Two of the Hunter Valley’s smelters had already cut down on their operations in recent month. The Tomago Aluminium smelter will receive its share of assistance, but it will also get affected by the carbon tax effect. A number of research and other projects are working towards lowering the energy associated with aluminium production and finding a solution to revive the industry. The current economic scenario gives a very negative picture. But, it is during crisis that innovative ideas get explored to find a way out of it. Since, Australia has a rich natural deposit in terms of raw materials; there are still chances of revival in future.

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Recycling also needs less energy and aluminium can be reproduced with only 5% of the total energy used to produce aluminium from bauxite ore. The scrap aluminium is melted to get back the metal. The process involves much lesser cost. Even the ash like oxide produced during the melting process can be used for extracting aluminium. Though recycled aluminium is called secondary aluminium, it carries the same physical properties as primary aluminium. Interestingly, approximately 31% of all aluminium produced in the United States comes from recycled scrap. Secondary aluminium is produced in a wide range of formats and is employed heavily in alloy injections and extrusion. As recycling does not damage the metal’s structure, aluminium has the potentiality to be recycled indefinitely and it is used in manufacturing any downstream products for which primary aluminium is used.

It is the environmental issue of recycled aluminium which needs to be addressed strongly. The amount of carbon dioxide produced during the smelting of aluminium from alumina is much more as it involves more energy. Recycled aluminium could be said to create 5% of the carbon dioxide produced in the creation from raw materials. This means lesser carbon footprint on the earth. So, efficient production and recycling can benefit the environment to a considerable extent.

The economic importance of aluminium recycling cannot be neglected as the total output of the recycling industry increased from 1.2 million to 3.7 million in 20 years. Though the primary production remains more or less stable, the recycling industry grew by a massive 94%.

This is the reason that big names like Alcoa, Norsk Hydro or Rio Tinto are heavily into recycling. There are various recycling campaign promoted by such big aluminium producers that can create awareness about the process. In a national recycling campaign, school children across Norway have collected millions of used aluminium tea cups. The campaign has been started by WWF in collaboration with IKEA and Hydro. Nina Jensen of WWF remarked that the campaign reveals a way to minimize carbon dioxide emissions and to reuse the resources. It creates awareness about natural resources and the environment and the value of recycling. Alcoa has been advocating recycling for pretty long. While aluminium represents just 2% of US recyclables, on average it generates 40% of the revenues necessary to maintain recycling programs. Alcoa says that the recovery and recycling of 75% of cans used in the US would be enough to eliminate the need for two coal-fired power plants and that is pretty amazing.

In Europe, aluminium enjoys high recycling rates, ranging from 41 % in beverage cans to 85 % in building and construction and 95 % in transportation. Since the material can be recycled indefinitely without loss of quality, there are strong natural incentives to recover and recycle aluminium products after use. A large majority of recycled aluminium is consumed by the transport sector. The other main markets are engineering, packaging and building.

Efficient recycling can benefit the environment and economy to a considerable extent and it becomes a responsibility for the manufacturers to promote recycling seriously. Recycling of aluminium products at the end of their useful life extends their value and gives a new lease of life which is no less than the former in any aspect.

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