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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ASI Announces new Executive Director: Dr Fiona Solomon
The Aluminium Stewardship Initiative (ASI) today announces the appointment of Dr Fiona Solomon as their new Executive Director from March 23, 2015. Fiona brings nearly twenty years of experience in sustainability, corporate social responsibility and independent third party certification in the mining industry and downstream precious metals sectors. ASI represents a logical next step for a metal that has been at the forefront of materials stewardship” initiatives for many years”, said Solomon. “I am honoured to be leading ASI into its next stage of development and sincerely thank the wide range of stakeholders who have contributed to its achievements to date. I look forward to growing the organisation with increasing company uptake across the aluminium value chain in the coming years, and...
Kobelco contributing to increasing demand for data storage components
Japanese steel manufacturer Kobelco is contributing to the increasing demand for data storage components across the world, manufacturing aluminium ground substrates, one of the main components of hard disks. In a hard disk, magnetic data is stored on a circular disk, which is typically made using an aluminium or glass substrate. Approximately one billion disks are sold per year in the global market, with the Kobelco group one of only two Japanese companies manufacturing aluminium substrates, with a 65 percent hold over the global market share. The company has been constantly developing technologies for many years, which corresponds to higher recording density of hard disks by controlling the substrate surface roughness and waviness in nanometre order, achieving a surface defect reduction...
Aleris reports fourth quarter and full year 2014 results
Aleris Corporation reported results for the three months and year ended December 31, 2014 on Friday, March 27, 2015. Here are some excerpts from the report showing highlights of the fourth quarter results and the full year results of the company for the year 2014. Except as otherwise indicated, all amounts reflect the divestitures of the recycling and extrusions businesses as discontinued operations. Fourth Quarter Summary • Divestitures of recycling and extrusions, as well as auto body sheet investment transforming Aleris • Adjusted EBITDA of $39 million, up $32 million compared to fourth quarter of 2013 • Income from continuing operations of $92 million, up $132 million compared to fourth quarter 2013 • Automotive body sheet volumes up 21 percent versus last year • Improved North...
EGA promotes proprietary technologies and industry expertise at TMS 2015
Representatives from Emirates Global Aluminium ("EGA") addressed business leaders, engineers and scientists from around the world at the 144th TMS Annual Meeting and Exhibition ("TMS 2015"), which took place in the USA from 15 to19 March. A total of seven papers were presented by experts from EGA, representing both of the company's core operating subsidiaries - Dubai Aluminium (" DUBAL ") and Emirates Aluminium ("EMAL") . "EGA's commitment to continuous innovation has been a key factor in our success and TMS 2015 provided the ideal platform for us share our technical knowledge and research with leaders in our field," said Abdulla Kalban (Managing Director & Chief Executive Officer). He continued, "Each of the papers presented by our experts at the event were technically sound and well...
Japan aluminium product demand seen rising 1.8 pct in 15/16
Japan's aluminium product demand, including for exports, is expected to grow 1.8 percent in the financial year starting April 1, backed by rising demand for cans for coffee beverages and a rebound in construction market, an industry body said on Friday. "Japanese economy is improving thanks to 'Abenomics' while export is also growing on the back of a weaker yen," Takashi Ishiyama, chairman of Japan Aluminium Association, told a news conference, referring to Prime Minister Shinzo Abe's policy to revive the economy. "Although demand in construction and automobile markets was hit by a sales tax hike last April, we expect it will gradually recover in the next business year," he said. Overall demand of aluminium products is forecast to increase to 4.16 million tonnes in the year to March 2016...
Hydro signs long-term power contract for Karmøy pilot
Norwegian aluminium company Norsk Hydro ASA’s fully owned subsidiary Hydro Energi AS has signed a long-term power contract with Axpo Trading AG, a Switzerland-based energy company with captive power production and international trading activity, for annual supply of 0.25 terrawatt hours (TWh) over 10 years from January 1, 2021, and a total delivery of 2.5 TWh. The contract covers a fourth of the Karmøy pilot plant’s power needs in the period 2021-2030. Hydro has already signed a contract with Lyse Produksjon AS for 330 GWh annually, or a third of the plant’s power needs, for the period 2031-2040.
Angul Aluminium Park receives 11 proposals from downstream units post approval
As soon as the Angul aluminium park received a go-ahead by the government, it has generated interest in the downstream aluminium industry inviting 11 proposals from establishments who are interested in setting up downstream units in the park. The proposed aluminium hub is a joint venture between National Aluminium Company and state-owned Odisha Industrial Infrastructure Development Corporation (Idco) with a 49.50-50.50 stakes respectively. According to plan, the park will allow wide variety of sectors from downstream aluminium industry to set up shop including sectors like conductors, extrusions, casings, foils as well as powder and paste. Nalco has already committed to provide 50,000 tons of molten metal per annum to facilitate the downstream units, saving them remelting and...
Guinea cancels tender for ex-BHP bauxite permits
Guinea cancelled a tender for bauxite mining blocks that sources said had been won by a Chinese firm in partnership with figures in President Alpha Conde’s political party. The government did not give any reason on Thursday for cancelling the tender for the blocks in Boffa, some 150 km (93 miles) north of Conakry. The acreage was previously owned by BHP Billiton which halted exploration there in 2012 after aluminium prices dropped. Guinea is battling to overcome an Ebola outbreak that has killed more than 2,000 people and is counting on a rebound in its mining sector to revive the economy. However, investor interest in the country – Africa’s largest exporter of bauxite – has cooled because of low metals prices coupled with political and contractual instability. The statement issued by the...
Australian Bauxite is on a roll with development of Campbell Town mining centre
Australian Bauxite (ABX) has been swift in developing its first bauxite mining centre near Campbell Town in Tasmania. Australian Bauxite mobilised the construction contractor to the site in December 2014 and was producing its first bauxite within three months. The new Campbell Town mining centre comprises three bauxite deposits, in Bald Hill, Fingal Rail and Nile. First mining is under way at the Bald Hill deposit, where Australian Bauxite is extracting direct shipping ore (DSO) quality bauxite. The Campbell Town mining centre was developed within a modest capital budget of $5 million and was completed on schedule. The Bald Hill bauxite deposit hosts a resource of 1.6 million tonnes, with 1.18 million in the indicated category and 0.42 inferred. The Campbell Town mining centre resource...
Noranda demands an extension of bauxite levy concession from the Jamaican government
Jamaican government and Noranda Bauxite Limited are at loggerheads as issues arise regarding payment of bauxite levy imposed by the government. The issue was revealed by Finance Minister, Dr. Peter Phillips on Wednesday, at the close of the budget debate in the House of Representatives. During the period of global economic crisis, the government had agreed to allow concessions on bauxite levy in an agreement established in 2009 and the regime was to end in December 2014. However Noranda now demands another 5 year extension on bauxite levy concession and the company has not been paying full levy since January, says Peter Phillip. He says, considering the financial condition of Jamaica and the improvements in the global economy, providing concessions will not be feasible for the country....
Logan Aluminum considers $282 million for expansion
The Kentucky Economic Development Finance Authority on Thursday gave preliminary approval for incentives to Logan Aluminum for a proposed $282 million expansion. The company could create 188 jobs, which would pay an average of $50 an hour, including benefits, according to paperwork filed with KEDFA. The wages those jobs would create qualified the company for a $5.2 million tax incentive over 10 years. "We look at it as a really exciting time in Logan County," Logan County Judge-Executive Logan Chick said. Chick said Logan Aluminum's potential expansion isn't "just a Logan County project," but rather one that will benefit the region and beyond. The expansion would include $70 million in building improvements and $212 million in equipment purchases. The company makes rolled aluminum for...
Fiat Chrysler considers moving Wrangler production out of Toledo; city resists
Fiat Chrysler is considering moving Wrangler production out of Toledo so that they can concentrate exclusively on the aluminium body design. The local union leader hopes that the state and city will come up with a suitable package for the company to prevent them from moving Jeep Wrangler’s production out of the area. CEO Sergio Marchionne had expressed the company’s interests to move the Wrangler’s production out of the Toledo plant since it would be too costly to build the aluminium bodied vehicle along with the Jeep Cherokee that is already built in that plant. Toledo leaders are hoping to hold onto the company and had delivered incentive packages to the company executives two weeks ago. Bruce Baumhower, president of United Auto Workers Local 12 in Toledo, says "I think the city, the...
Aluminium up by 0.5% on pick-up in demand
Aluminium futures edged higher by 0.50% to INR 111.40 per kg today as speculators enlarged positions amid pick-up in demand at spot markets. Besides, a firming trend in base metals pack at London Metal Exchange supported the upside. At Multi Commodity Exchange, aluminium for delivery in March rose 55 paise, or 0.50%, to INR 111.40 per kg with a business turnover of 612 lots. The metal for delivery in April also gained 50 paise, or 0.45%, to trade at INR 112.40 per kg in a turnover of 94 lots. Traders said a firm trend in the metal at spot markets on increased demand from consuming industries, influenced aluminium prices at futures trade here.
Graphene reduces wear of alumina ceramic
Alumina has for a long time been used in biomedical applications such as load-bearing hip prostheses and dental implants, due to its high resistance to corrosion, low friction, high wear resistance and strength. As material science progresses and advanced materials penetrate into society, ceramics are also continuously being improved, especially in strength and durability. In a most recent development, Graphenea researchers, together with collaborators from Russia and throughout Spain, have shown that the addition of graphene to alumina improves the ceramic's wear resistance and decreases friction. The result is expected to soon find its use in real products, as graphene and its derivatives seem to be biocompatible and in addition carry a low cost. The paper entitled "Wear behavior of...
Update: Orbite updates market on public offering and announces postponement of shareholders meeting
Orbite Aluminae Inc. announces that as a consequence of recent market activity and conditions, it will not be proceeding with the public offering of convertible debentures disclosed in its press release dated March 23, 2015. Also, as circumstances have evolved since the calling of the special meeting of shareholders initially expected to be held on April 2, 2015 for the purposes of the Series Y Subscription Rights, the Company will postpone the date of the meeting to a date to be confirmed shortly. To see previous news coverage on the topic, click here.
Indonesian government unsure about their stand on the bauxite export ban
The Indonesian government is in a fix about what to do with the mineral export ban since the announcement of a possible annulment of the ban caused mixed reactions. Said Didu, the head of smelter development acceleration team had said recently that the government is thinking of easing the bauxite export ban to generate revenue if miners were ready to commit that the earnings will be used for building smelters. Budi Santoso however argues that the idea is irrelevant. First of all this system would provide opportunity to play favorites with big companies. The policy should be applied to all mining companies. Another important consideration is that export of bauxite does not yield nearly enough revenue to develop smelters. While it takes between $500 million and $2 billion to build a...
Vietnam’s second bauxite plant to have test run next month
After delays in construction, Vietnam’s second bauxite refinery plant in the Central Highlands province of Dak Nong will have its first test run next month, news website Saigon Times Online reported Tuesday. Le Minh Chuan, chairman of the Vietnam National Coal and Mining Industries Group (Vinacomin), was quoted as saying that the test is to prepare for Nhan Co Plant’s trial production later this year. Work on the plant, which is designed to produce 650,000 tons of alumina a year, started in 2010. The construction was scheduled for completion in 2012, but delayed due to difficulties in site acquisition. Vinacomin also plans to operate the country’s first plant, Tan Rai in nearby Lam Dong Province, at its full capacity by the end of the year, according to the report. The plant is currently...
Invitation - Hydro's first quarter results 2015
Hydro's first quarter results 2015 will be released at 07:00 CET (01:00 AM EST, 06:00 UK time), on Wednesday April 29, 2015. The quarterly report and presentation slides will be available on Hydro's website at the same time. Presentation in Oslo Hydro will host a combined analyst and press conference, in English, at its corporate headquarters at Drammensveien 260, Oslo at 08:30 CET the same day. The presentation will be held by President and CEO Svein Richard Brandtzæg and CFO Eivind Kallevik and can also be seen on web TV. To attend the presentation in Oslo, please register on Hydro's website. Q&A / Conference Call There will be a Conference Call at 15:00 UK Time (16:00 CET, 10:00 AM EST,) the same day. The Q&A will be held by President and CEO Svein Richard Brandtzæg and CFO Eivind...
