Bauxite Mining in Australia

Australia is the leading producer of bauxite and alumina globally as well as the fifth largest aluminum producer in the world. Demand for bauxite is growing at a faster rate than the growth in global industrial production. In the emerging economies of Asia and India, bauxite demand is particularly strong. Australia's aluminum industry is a large integrated industry of mining, refining, smelting and semi-fabrication, which is of major economic importance nationally and globally.

The most significant deposits of bauxite in Australia are located at Weipa in northern Queensland, at Gove on the Gove Peninsula in Northern Territory, and in the Darling Range and Mitchell Plateau areas of Western Australia. Deposits at Mitchell Plateau and Cape Bougainville in the north of Western Australia are uneconomic to develop but are important as future resources. All of Australia's bauxite deposits are hosted by aluminum rich soils, with Gibbsite being the main ore bearing aluminum mineral. The Australian aluminum and bauxite industry consists of five bauxite mines, six alumina refineries, six primary aluminum smelters, twelve extrusion mills and four rolled product mills.

Alcoa, BHP Billiton and Rio Tinto Alcan are the biggest players in the industry. The Australian bauxite mining industry is highly concentrated, with only three enterprises accounting for the all of the industry's production. Alcoa alone accounts for about half Australia's bauxite output. The acquisition of Alcan by Rio Tinto in late 2007 increased the industry concentration. The industry is highly regulated, with state governments in particular overseeing nearly all aspects of operation. State governments determine which land is open to exploration and mining, issue exploration and mining leases and collect royalties from producers.