AL Circle Analysis: Bauxite developments, alumina trade & primary aluminium market dynamics across Australia, Guinea, US & India
The aluminium industry is entering another phase of supply-chain repositioning. Across bauxite, alumina and primary aluminium, companies are investing in new resources, consolidating strategic assets and expanding processing capacity, while governments are increasingly treating domestic supply as a strategic priority. The latest developments from Australia, Guyana, Guinea, Indonesia, the US and India point to a market where resource security, processing location and control over supply chains are becoming as important as production growth. At the same time, new trading mechanisms and changing investment patterns are beginning to influence how aluminium and its raw materials reach the market. Bauxite supply expands, but securing the right tonnes is becoming harder In Western Australia, VBX...
China's 22.87 Mt extrusion market faces a structural shift as 317 GW solar growth counters weak construction demand
The global aluminium extrusion landscape is undergoing a structural transition driven by industrial decarbonisation, global electrification, and the rapid deployment of clean energy infrastructure. Historically anchored by civil engineering and residential real estate, demand for extruded aluminium profiles in China, the world’s dominant manufacturing hub, is decoupling from traditional property sectors. Persistent structural weakness in China’s domestic construction market has slowed the consumption of conventional architectural profiles such as window frames, door sections, and curtain walls. Conversely, advanced industrial applications, specifically solar photovoltaic (PV) racking, battery energy storage systems (BESS), power grid modernisation, and electric vehicles (EVs), have...
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Nalco expects its alumina output to rise by 1 million tonne in next 4.5 years
Nalco expects its alumina output to rise by 1 million tonne in next 4.5 years, of which 21.8 lakh tonne can be obtained in FY16, NR Mohanty, CMD, Nalco told CNBC-TV18. Nalco made a record profit of Rs 1322 crore last year but now the market is crashing due to Chinese dump entering the aluminum market, he said. The company expects the 3 million tonne Pottangi bauxite mine to be alloted by FY17. There are talks of state government introducing new Corporate Social Responsibility (CSR) policy for the mines located in this region, he said. As of now, the company contributes 2 percent of its profits as CSR for District Mineral Fund (DMF). Meanwhile, the un-auctioned Utkal-D and Utkal-E coal blocks are likely to be re-allocated to Nalco soon.
Metro Mining amends Hey Point bauxite sale agreement
Metro Mining and private company Green Coast Resources Pty Limited have amended an earlier sale agreement struck in June 2013 for the sale of its Hey Point bauxite tenements on Western Cape York. The revised deed of amendment and termination agreement will see wholly owned subsidiary of Metro Mining, Cape Alumina Pty Limited receive a sum of $250,000 to be paid by GCR today. The outstanding sum of $750,000 will be increased to $825,000 and paid in two instalments; $275,000 in September 2015 and $550,000 in December 2015. Additionally, the marketing agreement between GCR and Cape Alumina has been terminated in consideration for a 1% increase in royalty payable by GCR to Cape Alumina on FOB Bauxite sales. This will now provide Cape Alumina with a right to receive total royalties of 3%-4% of...
Utilization rate at China A356 aluminum alloy producers fall in May
Utilization rate at 15 Chinese A356 aluminum alloy producers dropped slightly to 61.14% in May, Shanghai Metals Market survey finds. The small decline in production, however, leaves the market still in slight surplus, SMM aluminum group says, which kept processing fees for A356 aluminum alloy in check. Consumption in domestic market is expected to be restricted by limited growth expectation towards China’s automobile production and sales this year, SMM adds.
MCX Aluminium futures inch up on overseas cues
Aluminium prices edged up 20 paise to INR 108.55 per kg in futures trade today as participants enlarged positions amid a firming trend overseas. Strong demand in the spot market also influenced metal prices. Aluminium for delivery in June inched up 20 paise, or 0.18 per cent, to INR 108.55 per kg in a business turnover of 143 lots in futures trade at Multi Commodity Exchange. Likewise, the metal for delivery in July traded higher 10 paise, or 0.09 per cent, to INR 110.30 per kg in 12 lots. Marketmen said apart from increased domestic demand, a firming trend in global markets, helped aluminium futures trade higher. At the London Metal Exchange, aluminium for delivery in three months gained 0.3 per cent to USD 1,721.50 per tonne.
Press Metal to look beyond temporary hiccups
Press Metal Bhd (Press Metal) will likely rebound from the myriad of setbacks faced this financial year 2015 (FY15) as RHB Research Institute Sdn Bhd (RHB Research) viewed the group to currently operate low-cost aluminium smelters in in the first quartile of the global cost curve. At a visit to Press Metal’s smelting operations in Samalaju last Friday, RHB Research witnessed repair works at the group’s Phase II smelter which caught fire last month, and saw that things were well in progress with six pots energised at the point of visit. According to the research house, management targets the plant to be back in full operation by end-third quarter of 2015 (3Q15). “Separately, Press Metal also brought us to its Phase III expansion, with construction well into advanced stages despite works...
Sohar Aluminium receives Pan-Arab Award for Environmental Stewardship
In recognition of its steadfast commitment to protecting the eco-system, Sohar Aluminium (SA) was honored by the Arab Organization for Social Responsibility for its environmental excellence during the recent Best Environmental Initiatives Awards held in the United Arab Emirates. The Arab Organization for Social Responsibility presented SA with the prestigious accolade for demonstrating its deeply rooted environmental ethos within its world-class operations as well as the wider community. The recognized initiatives included SA's exceptional Waste Management Strategy, the Sohar Aluminium Coral Reef Cleaning Campaign which was led by 35 volunteers from SA to clean reefs of Khor Al Siyabi, Al Suwaihra, Ghail Al Shubool, Al Uwainat and Majazz as well as the highly successful Sohar Battery...
Queensland Bauxite fast tracks resource drilling at South Johnstone Bauxite Project
Queensland Bauxite Limited provides an update on drilling and corporate activities at its flagship South Johnstone Bauxite Project in northern Queensland. · Two drilling programs underway to fast track project development · Additional drill samples sent to ALS Laboratory for assaying · Current programme aimed at upgrading Indicated Mineral Resource to Measured Resource · Mine Plan, environmental approvals and work for the mining development licence application all progressing Drilling continues apace as two drilling teams are now on site to expand the development of the project. Results from new drill holes are progressively being sent to ALS Laboratories for assaying. The objective of the current drilling is to upgrade the current Indicated Mineral Resource under the 2012 JORC Code to a...
Indonesia seeks legal route for bauxite miners to resume exports
Indonesia's government is discussing legal avenues to allow a resumption of bauxite exports to help kickstart stalled smelter projects, top officials said, as Southeast Asia's largest economy tries to promote infrastructure development. Indonesia imposed restrictions on exports of unprocessed metal ores in early 2014 in an effort force firms to develop smelters that would add value to the country's resources and create jobs. However, many firms including bauxite miners said building smelters was unfeasible in the absence of supporting infrastructure and export revenue, and the country's revenue from mining has plummeted. Indonesia's bauxite exports fell to 2.1 million tonnes in calendar 2014 from 55.6 million in 2013, when they were worth US$1.3 billion to the country's economy. The need...
Chinese exports of aluminium 'semis' to drop as global prices fall
Chinese exports of semi-finished aluminium products are likely to drop in coming months as prices in the international market fall, industry sources and traders said. Exports of the semis, including profiles and plates, have been blamed as a factor for lower global premiums on primary aluminium. Lower availability could stop the premium from falling further, traders said. "Semis exports would fall later because LME aluminium prices have fallen," said a trader at a Chinese state-owned primary aluminium producer that also makes plates and exports the product. He added that exports in May had still been strong because those shipments had been booked a month or two before delivery. A trader at a Western producer of aluminium semis said overseas buyers would not buy more Chinese products...
EU regulators to decide by July 20 on Ball's $6.9 bln Rexam bid
European Union market competition regulators are set to decide by July 20 whether to approve the 4.4 billion-pound ($6.9 billion) merger deal between Ball Corp and Rexam Plc, the world's two largest makers of drinks cans. The companies sought approval for the deal on Tuesday, according to a filing on the European Commission website. The European Commission can clear the merger unconditionally in the preliminary review or extend the deadline to consider concessions offered to allay competition concerns. It can also open a full-scale investigation to examine deeper worries. Rexam Chief Executive Graham Chipchase has dismissed any significant regulatory problems but analysts said the size of the combined company could force regulators to demand concessions such as asset sales in return for...
Calderys launching its new brand platform at GIFA 2015
Calderys today unveiled a new brand identity platform, reflecting the company's capabilities as a provider of global end-to-end refractory solutions. The new brand positioning and imagery better reflects the company’s capabilities of combining its world-class refractory product portfolio with the ability to deliver high-quality project management services - from planning and installation, to turnkey delivery and commissioning. The new brand platform also better showcases the company’s established presence in most developed and developing markets across all industries - iron, steel, foundry, aluminium, cement & lime, oil refineries & chemical, and boilers & incinerators. Capturing the essence of this position, the brand’s new identity takes a departure from the qualifier 'Refractory...
Enval ready for commercial waste recycling
United Kingdom-based Enval Limited has developed a technology which allows the recyclable foil to be extracted from laminate packaging like food and drink pouches, pet food pouches and toothpaste tubes. The firm's factory is now ready to undertake commercial waste recycling, and it has launched a crowd-funding campaign on Cambridge-based platform SyndicateRoom as it looks to raise £800,000 to fund further growth. Enval was born out of a research project at Cambridge University's department of chemical engineering which turned out to be a commercially viable project. Carlos Ludlow-Palafox is the founder and managing director of Enval. He said: "We've been using the factory in our commercial business about a month now, so we've accompished what we initially wanted to do, but now we want to...
Bauxite Residue Valorisation and Best Practices Conference to focus on red mud as a high value resource
Bauxite residue is a resource, a material that can be valorized. The current practices for bauxite residue utilization in some parts of the world need reconsideration and revision. KU Leuven and REDMUD Organization together are organizing a conference keeping the bauxite residue utilization in perspective. The conference on “Bauxite Residue Valorisation and Best Practices” will take place in Leuven from 5 - 7 October 2015. The goal of the conference is to attract a number of researchers around the world and promote the most realistic and scientifically sound solutions for bauxite residue valorization. The conference will welcome ideas that are novel and exciting, in the framework of industrial symbiosis and which can exploit the potential of Bauxite Residue as a secondary resource. The...
LME aluminium contract may fail to serve its purpose
LME aluminium contract which was supposed to be launched in November 2015 may fail to serve the purpose as the aluminium premiums are falling at a higher rate. LME aluminium contract was a strategy to withstand rising aluminium premiums and long LME warehouse queues as well as to free the metal tied up in financial deals. However premiums or the price that is paid to get physical delivery of aluminium have fallen down abruptly in last few months in all major locations around the world. The queues at the warehouses in Detroit and the Dutch port of Vlissingen have become much shorter and the metal is leaving the warehouses at a much faster rate. The process will be faster from August with the implementation of new LME rules which require warehouses to ship out more aluminum than they take...
Orbite Aluminae announces change of name to Orbite Technologies Inc. from June17
Orbite Aluminae Inc. announces that effective June 17, 2015, the Company will change its name to Orbite Technologies Inc. to better reflect Orbite's current vision and growth prospects, while emphasizing the importance of its technologies in its current and future growth plans. Accordingly, Orbite's website will change to www.orbitetech.com. Concurrently with its name change, the Company's shares will begin trading under the "Industrial/Technology" listing segment on the Toronto Stock Exchange, instead of "Mining". The Company stock symbols will remain unchanged, namely "ORT" for the Toronto Stock Exchange and "EORBF" for the OTCQX. "We have now met the requirements of the technology segment on the TSX, which has allowed us to effect this name change," stated Glenn Kelly, Orbite's CEO....
Alro salutes the EC conclusion that its contract with Hidroelectrica did not involve state aid
Alro SA, one of the largest aluminium producers in Central and Eastern Europe, salutes the conclusions of the investigations conducted by the European Commission (EC) in respect to its contracts with the electricity generator Hidroelectrica. As per the EC press release sent out on June 12th, “following an in-depth investigation, the European Commission has concluded that electricity supply contracts signed by the state-owned Romanian electricity generator Hidroelectrica with certain electricity traders and industrial customers did not involve state aid within the meaning of the EU rules”. Moreover, “in particular, the analysis revealed that Hidroelectrica charged prices that were fully in line with the benchmark market price to nine customers” among them Alro as well. The EC press release...
BoA extends validity of Vedanta SEZ
The Board of Approvals for Special Economic Zones (SEZs) under Union commerce & industry ministry has extended the validity of Vedanta Ltd's product specific SEZ at Jharsuguda by one year. The BoA has granted the extension to the developer at a recent meeting. The validity of the SEZ has been extended till May 22, 2016. Earlier, the development commissioner, Falta SEZ had recommended the Vedanta's case to BoA. Formal approval for the SEZ was granted on May 23, 2007. Vedanta claimed to have completed 95 per cent work on the SEZ and hopes to complete the unfinished work by May 22 next year. Vedanta's product specific SEZ includes an aluminium smelter complex where the proponent has already invested Rs 12,000 crore. The project was set up as a sector specific SEZ for producing aluminium...
UAE aluminium giant says to cut 4% of workforce
Emirates Global Aluminium (EGA) on Thursday said it is cutting its workforce by 4 percent as part of a strategic restructuring to reduce costs and boost operational efficiency. EGA was created by the merger of two state-owned aluminium companies - Dubai Aluminium (Dubal) and Abu Dhabi's Emirates Aluminium (Emal) - to create what was at the time the world's fifth largest aluminium company with an estimated value of $15 billion. The move, which would see around 250 support positions cut, is aimed at creating a leaner entity and increasing competitiveness as it looks to expand in the UAE and abroad, EGA said in a statement. EGA is jointly owned by Abu Dhabi's investment fund Mubadala and the state company which holds Dubai's most high-profile assets, Investment Corporation of Dubai (ICD)....
