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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Nampak releases results for the six months ending March
Nampak, Africa’s leading manufacturer of beverage, food and non-perishable packaging reported that strong results from the rest of the continent were offset by headwinds faced by its South African operations in the six months ended 31 March 2015. “Trading profit from high-margin businesses in the rest of Africa have grown to contribute 38% to group trading profit, up from 27% in 2014”, said chief executive André de Ruyter. The company aims to increase this proportion to 50% as it increases production outside South Africa. Nampak’s Bevcan division, notably in Nigeria and Angola, showed outstanding growth and was a major contributor to group profits. Bevcan Nigeria maintained volume growth while growth in demand for beverage cans in both beer and carbonated soft drinks continues. Bevcan...
Fiat Chrysler falling behind in the aluminium run for trucks and SUVs
Fiat Chrysler, being a dominant player in the SUV and trucks market will soon have to adopt increased use of aluminium to meet the tough fuel economy regulations. Trucks and SUVs are anyways poor in fuel economy and federal fuel economy regulations are threatening to rise sharply through 2025 pushing the company to come up with some smart solutions for fuel economy or risk losing the market. Fiat Chrysler is already falling back behind its competitors with average corporate fuel economy rating at the bottom of the pack according to Environmental Protection Agency’s ratings. To combat the situation, Chrysler had considered converting the non-aerodynamically built Jeep Wrangler’s steel body to aluminium but has backed out because of high costs. They will however use the metal extensively in...
Montenegrin officials may testify over bankrupt aluminium plant
Montenegrin officials may be called to testify in international courts over bankruptcy of aluminium plant Kombinat Aluminijuma Podgorica (KAP), RIA Novosti reported on Monday, citing a spokesperson for the Central European Aluminum Company (CEAC). CEAC, a subsidiary of Oleg Deripaska’s En+, managed the plant until July 2013 when Montenegrin officials initiated a bankruptcy due to debt in excess of 350 million euros. CEAC objected to the bankruptcy. The company launched arbitration proceedings in Vienna and turned to the International Centre for Settlement of Investment Disputes (ICSID) seeking some 900 million euros in damages. CEAC is expecting a trial on the merits and a final ruling by the end of 2016. The company claims that Montenegro broke the terms of an agreement on the Podgorica...
ISRI testifies before Library of Congress in support of recyclers’ ability to unlock mobile devices
The Institute of Scrap Recycling Industries (ISRI), the Voice of the Recycling Industry™, testified today before the United States Copyright Office, a department of the Library of Congress, in support of exempting recyclers who engage in bulk “unlocking” of mobile phones from liability. The testimony was included as part of hearings concerning exemptions to the anticircumvention provisions of the Digital Millennium Copyright Act (DMCA). “Recyclers, such as ISRI members, need to be able to unlock in bulk the phones they legally obtain,” said Eric Harris, ISRI’s associate counsel, and director of governmental and international affairs. “We need a clear exemption to Section 1201 that removes concerns about potential DMCA liability, the risk of which is substantial under the current law. Our...
Aurum Exploration Fiji targets to plant 50,000 pine trees this year
The Aurum Exploration Fiji Limited has targeted to plant 50,000 pine trees this year as part of the rehabilitation works after the completion of the Nawailevu Bauxite Mining site in Bua. Managing Director, Sireli Dagaga said they only have 5,000 pine trees to cover the mine area before they move outside the mine area. Dagaga says pine trees are the only tree species that can survive on these areas due to the weather condition and that is why there were some delays in the rehabilitation works. Aurum Exploration Fiji Limited was given a 20 year land lease on this piece of land which belongs to the Mataqali Naicobo of Nawailevu in Bua. Meanwhile, mining has already started on a 30 hectare of land that belongs to the Mataqali Naita of Lekutu and is also on a 20 year land lease. 75 permanent...
Vedanta, Jharsuguda awarded 1st Prize at Green Manufacturing Excellence Award
Vedanta Limited, Jharsuguda was awarded in the Challenger’s Category at the Green Manufacturing Excellence Award (GMEA) 2015 Summit in Mumbai. The prestigious national level award from M/s Frost & Sullivan on 22nd May 2015 was won by Vedanta’s Jharsuguda unit for its initiatives on Sustainable development practices. Vedanta Jharsuguda was short-listed among mega companies, for the assessment based on performance record of the year 2014-15. The nomination for the award included on site assessment, conducted by the team from Frost and Sullivan at Jharsuguda and subsequent evaluation by Executive Committee. Mr. Abhijit Pati, CEO Aluminium, Vedanta Limited, in his message congratulated the team and expressed that his surety to achieve more success in future owing to Vedanta’s committed team...
Amtek Auto to acquire German components maker Rege Holding
Arvind Dham-led automotive component supplier Amtek Auto Ltd has signed an agreement to acquire Germany-based Rege Holding GmbH (Rege) for an undisclosed amount, according to a stock market disclosure. The deal, which is expected to close by August this year, is routed through its Singapore-based subsidiary Amtek Precision Engineering Pte Ltd. Post acquisition, Rege will provide machining and assembly of components for both auto and non-auto segments through its subsidiaries. The company was founded in 1987 and manufactures products like connecting rods, crankcases, cylinder heads, gear housings and valve body components. It has two manufacturing plants—one each in Germany and Romania. Rege generates majority of its revenues acting as a tier I and single-source supplier to leading...
Aluminium Federation cans the can
The Aluminium Federation (ALFED), the trade body for the UK aluminium industry, has introduced drinks can recycling at its offices. The organisation is one of seven metals organisations based at the National Metalforming Centre in West Bromwich. Depositing the first cans into the new collection box, Aluminium Federation chief executive Will Savage (pictured) commented: “As representatives of the aluminium sector, we thought we should set an example to our members and others. Aluminium is used widely to make food packaging – especially drinks cans - and can be recycled again and again, with no loss of quality. Around a third of drinks in cans are consumed outside the home, so do not get recycled through local authority kerbside collections. “Aluminium was being collected to melt down for...
Noranda announces appointment of Richard B. Evans as Chairman of its Board of Directors
Noranda Aluminum Holding Corporation announced today that its Board of Directors has appointed Richard B. Evans to serve as the Chairman of the Company's Board of Directors. Mr. Evans has more than 40 years in the aluminum industry, having served in senior management positions at Rio Tinto, Alcan and Kaiser Aluminum & Chemical. His executive management experience encompasses engineering, operations, finance, sales and strategy. The Company also announced that the Board of Directors appointed its former Board Chairman, William H. Brooks, to serve as Chairman of the Nominating and Corporate Governance Committee. Mr. Brooks previously served as Chairman of the Board from March 2008 to May 2015. "Noranda is fortunate to have a proven, respected leader like Dick Evans to head a board that...
World aluminium production declines on a monthly basis in April 2015
World Aluminium markets that showed record production numbers in the month of March 2014, depicted a marginal decline in the month of April 2015. The April month again indicated that the production trend is declining. Data estimates from International Aluminium Institute (IAI) showed that the total primary Aluminium production reached 4.73 million tonnes in the month of April 2015 from 4.77 million tonnes in the month of March 2014. On a year on year basis the production is still showing signs of improvement. The production increased 10.25% on a y-o-y basis in April 2015. Comparing it with previous month, production of Aluminium declined by 0.83%. The production of Aluminium in April 2014 was 4.29 million tonnes. China remained the major contributor to the production although the increase...
BHP Billiton's South32 spin-off tipped for success despite commodities downturn
Mining spin-off South32 has received a positive response from institutional investors just weeks after the company was de-merged from its parent BHP Billiton. Brokers Jefferies and Deutsche Bank have slapped glowing recommendations on the company, which has a market value of around $10bn (£6bn). Deutsche Bank, which rates the stock as a hold, said: “The listing of South32 has created a $10bn diversified global mid-cap miner with a strong balance sheet and reasonable cash flow from what we think is a mixed asset base.” Jefferies was more bullish handing the company a buy recommendation and a price target of 145p per share. Share in South32 traded in London were down about 4pc at 112p yesterday. “All things considered, South32's financial strength and inexpensive valuation offset its asset...
Disputes over bauxite export permission
A Concern Rennell landowner has called on Prime Minister Manasseh Sogavare to remove Members of Parliament and senior government officers who have given the nod to PT Mega Bingtang Borneo Ltd to export the stockpile of bauxite out of country. The landowner who declined to have his identity revealed described Cabinet’s decision as daylight robbery. Last week Cabinet approved a limited shipment stockpiled bauxite from the Rennell mine, operated by PT Mega Bingtang Borneo Company to be exported. But the man claiming to be speaking on behalf of the landowners said, the decision made by the government was not right. “It’s not right because gov’t had already terminated their licence to operate on Rennell island; surprisingly government again gave them an order to export. “This is a total breach...
Nabaltec AG's revenues and earnings in the first quarter of 2015 up from the same period of last year
• Revenues up 5.4% to EUR 38.8 million, EBIT up 60.0% to EUR 4.8 million; • Earnings per share up 52.9%, to EUR 0.26. Nabaltec AG published its interim report for the first quarter of 2015 today, and confirmed its preliminary data. The company's strong performance last year continued in the first quarter of 2015, as both revenues and earnings exceeded the comparison values from the year before. Nabaltec's consolidated revenues amounted to EUR 38.8 million in the first quarter of 2015, up 5.4% from the value posted in the same quarter of last year, EUR 36.8 million. Relative to the fourth quarter of 2014, revenues were up 14.8%. In operating result (EBIT), a strong 60.0% gain was posted relative to the first quarter of 2014, to EUR 4.8 million. Gerhard Witzany, Member of the Board of...
Odisha's poor power linkage policy hit aluminium plant: Vedanta
Mining and minerals giant Vedanta today said it is operating its Jharsugda aluminium facility at a mere 25 per cent of installed capacity while putting the blame on state government for absence of power linkage policy and raw material crunch. The NRI-billionaire Anil Aggarwal-led company has set up one of the largest single location aluminium plants at an investment of Rs 52,000 crore. Lack of raw material linkage to run the Lanjigarh refinery and absence of a proper policy for drawing power from its own 2400 MW Independent Power Plant have affected the project, Abhijit Pati, CEO - Aluminium, Vedanta, said. Vedanta's Jharsuguda complex houses 1.75 MTPA capacity smelter, 1215 MW Captive Power Plant and 2400 MW Independent Power Plant (IPP). 1.25 MTPA smelting capacity is lying idle for...
ENRC seeks $2 billion loan to increase aluminium capacity
Kazakhstan needs $3 billion to boost copper and aluminium output in Central Asian nation and seeks loans from China to build two new plants said Minister Albert Rau, Kazakh Deputy Investment and Development. ENRC Group, which delisted from the London Stock Exchange in 2013, wants to double its current aluminium out of 250,000 thousands and seeks a loan of around $2 billion for it. The company produces alumina and aluminium and also deals with iron ore although there main business is the production of ferroalloys. However they are now trying to double their aluminium capacity by launching two new production stages each with a capacity of 125,000 tons, said Rau. Kazakhstan also wants to boost processing of the metal along with the increase in production. "We are first and foremost...
Delhi HC asks govt to consider Balco’s coal mine plea
The Delhi High Court on Monday asked the government to treat Bharat Aluminium Company’s (Balco) petition as its representation to it and decide whether it was to be “chosen as the succesful bidder” for a Chhattisgarh coal block within a month. Balco, a Vedanta Group firm, had challenged the government’s decision to cancel its bid, which was the highest, for Gare Palma IV/1 coal block and annulment of the tender process on the grounds of presumed cartelisation. Balco wanted the HC to declare the action of government to be arbitrary and direct allotment of the coal black in its favour. A bench of justices BD Ahmed and Sanjeev Sachdeva while directing the Centre to consider Balco’s plea within four weeks also allowed the company to file fresh petition in the event the decision went against...
Indian Govt. releases new version of its container inspecion regimen
Recyclers who ship scrap metal to India were able to discuss breaking news, as that nation’s government released the newest version of its container inspection regimen while the industry was gathered at the 2015 Bureau of International Recycling (BIR) World Recycling Convention in Dubai, United Arab Emirates, in May. India’s Directorate General of Foreign Trade (DGFT) distributed a 10-page document with revisions to its imported scrap metal inspection regimen on Monday, May 18, the day before the BIR’s International Trade Council met in session. At the BIR session, three officers of the Metal Recycling Association of India (MRAI)—Ikbal Nathani, Sanjay Mehta and Dhawal Shah—provided their perspective on the revisions. According to the trio, among the biggest changes is that the DGFT has...
Indian states to start auction of 200 mines next month
Beginning next month, eight mineral-rich states will start the e-auction of 200 mines with iron ore, limestone and bauxite deposits. The states have been empowered by the centre to auction mines with these three mineral resources. These 200 mines are mainly concentrated in Rajasthan, Jharkhand, Madhya Pradesh, Chhattisgarh, Karnataka, Gujarat and Odisha. In the second round, mines with seven other minerals will be put up for e-auctions. The ministry of mines on Monday notified the rules for the e-auctions, the proceeds of which will accrue to the respective states. The e-auctions have been made mandatory to award unified prospecting and mining leases for bauxite, limestone and iron ore. The centre has stipulated that only companies or individuals with networth of INR 25 crore and above...
