Alcoa gets government approval for bauxite export

Alcoa could begin shipping bauxite to potential customers in Asia early next year after the State Government approved the trial export of up to 500,000 tonnes of raw ore.

Alcoa has for some time been exploring the possibility of joining Rio Tinto in exporting raw bauxite ore from Australia, sending small trial samples of the product to Asian refiners for metallurgical testing earlier this year. That program is set to escalate after Premier Colin Barnett, as Minister for State Development, approved the export of up to 500,000t of bauxite from Alcoa’s Huntley and Willowdale mines.

A spokeswoman for the Department of State Development said the approval had been granted in July under Alcoa’s 1961 State Agreement. Further approval would be needed if the global aluminium giant wanted to expand its exports beyond the initial trial. Alcoa chairman Klaus Kleinfeld told analysts on the company’s quarterly earnings call last week that trial shipments could begin early next year.

It is understood the company plans a series of smaller 50,000t shipments through Kwinana to test appetite for the product, before deciding whether to apply for permission to build a more substantial business from its WA mines.

An Alcoa spokeswoman said the bauxite export business would have no impact on its WA refineries at Wagerup, Pinjarra and Kwinana, which collectively produce about 9 million tonnes of alumina each year. She said the ore targeted by Alcoa for export did not meet the technical specifications for its WA refineries.

“Ore that is currently left in the ground could potentially be exported for processing elsewhere, helping to optimise the value of the mineral lease,” she said.

Earlier this month Alcoa applied for environmental approval to increase production from its Pinjarra refinery by up to 20 per cent, to 5mtpa.