
As per the recent report by BMI research, bauxite production is likely to grow globally over the years owing to the estimated increasing production in India, upcoming projects lined up in Australia and Indonesia’s reappearance in the market following the end of the mineral ore export ban.

The report estimates that Indonesia will become a major player in coming time for reclaiming its share of bauxite exports to China and further elaborates “"We forecast Indonesia's bauxite production growth to register an annual average of 24.4% during 2018-2027, compared to 77.1% over the previous ten-year period. We expect output to increase from 7.5 million tonnes in 2018 to 43.3 million tonnes by 2027."
According to BMI, the relaxation of the ban on bauxite exports allowed many companies to have a robust return to the market. In April 2017, the Mining Ministry announced its recommendation to PT Aneka Tambang to export 850 kilo tonnes of bauxite; while in July 2017, the government gave permission to the PT Dinamika Sejahtera Mandiri to export 2.4 million tonnes of bauxite and in September 2017, PT Laman Mining received an annual bauxite export quota of 2.9 million tonnes.
Australia, being the world’s top bauxite producer is also expected to hold its ground and make a strong presence in China market maintaining a steady output growth, according to BMI. India, on the other hand, is also anticipated to increase the bauxite production, right from 30.9 million tonnes in 2018 to 49.7 million tonnes in 2027, with a support of the government ordinance that asks domestic aluminium demand to be met with local bauxite and by a predicted five-fold increase in mining lease area in Odisha.
Lastly, BMI estimates China’s bauxite production to remain stagnant over the years due to deteriorating quality of reserves and government-led initiative to consolidate the section. It further forecasts China’s bauxite output to edge higher from 66.1 million tonnes in 2018 to 76.9 million tonnes in 2027, an average annual growth of 1.7 per cent. This indicates a downtrend compared to the average growth rate of 8.3 per cent in the last 10 years.
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