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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Paulwell pays tribute to Dr Keith Panton, torch bearer for Jamaica's bauxite industry
The life of the late Dr the Hon Keith Panton can best be described as an enduring journey into the development and expansion of the bauxite and alumina industry in Jamaica. Having earned his tertiary education abroad, he chose to return to his native land and spent most of his productive years in the industry at Alcan Jamaica Company, ensuring that as far as possible, the industry was exploited in a sustainable manner, while ensuring the Jamaicans were not mere beneficiaries of a thriving industry, but were active and productive participants in the process. This was reflected in his preoccupation with human resources development but more so in his even handedness when he was faced with the challenges of balancing management objectives on one hand with the demands of organized labour on...
OMC initiates steps to scrap bauxite mining JV with Sterlite, Hindalco
Odisha Mining Corporation (OMC) has started the process to scrap bauxite mining joint venture (JV) projects with Hindalco and Sesa Sterlite after the state government said the state-run miner can take a decision to do so. “We have sent show cause notices to Hindalco and Sesa Sterlite after the government said we can take a call on this. They have been asked to send their replies within two weeks,” said Girish S N, managing director of OMC, saying the notices were sent earlier this month. The companies have been asked to reply why JVs with them would not be scrapped as they have not achieved progress as per the agreement, he added. OMC had formed South West Bauxite Mining Company (Pvt) Ltd with 26:74 equity shareholding in association with Sterlite Industries India Limited (SIIL) in 2009...
Scrap-Metal separation may become cheaper
According to the Environmental Protection Agency, the United States throws 14.8 million tons of scrap metal into landfills every year. One of the main reasons is the difficulty of large-scale separation of non-ferrous metals. Scientists at the University of Utah now say they have solved that problem. Recycling metals is much cheaper than extracting them from the ore. But chopping up old cars, appliances or industrial equipment results in a mixture of different metal parts. Iron and steel are easily separated with strong magnets, while others, such as copper, aluminum and titanium, either end up in landfills or are shipped to countries with cheap labor to pick out the different metal by hand. Researchers at the University of Utah now say they have developed a method for mechanically...
UC RUSAL announces its results for the year ended 31 December 2014
Key highlights • Positive trends in the aluminium market observed during the year ended 31 December 2014 with recovering London Metals Exchange (“LME”) aluminium prices and growing premiums, coupled with weakening local currency had significant positive effect on the profitability and financial results of RUSAL. Net Profit for 2014 comprised USD293 million as compared to Net Loss of USD3,322 million for 2013. • In August 2014 the Company successfully completed refinancing of its debt portfolio including PXF and bilateral facilities. Terms of the refinancing allow the Company to postpone the scheduled repayments of principal until January 2016. However, in December 2014, the Company made an early repayment of USD300 million of the outstanding debt in addition to USD53 million repaid in...
High output lifts Hulamin earnings
HULAMIN saw record results in the year to December as normalised earnings rocketed 76% and headline earnings per share skyrocketed 96%, with operating cash flows soaring 83% to R518m. This saw the maker of aluminium products declare its first cash dividend since financial 2008 as it resumed its dividend payment policy of three-times dividend cover. The stellar result came as higher aluminium production boosted revenue. This was further fuelled by a 12% fall in the rand-dollar exchange rate. Meanwhile, working costs were contained by the group. "We achieved record earnings with improved contributions from our key products and a weaker rand," David Austin, chief financial officer and acting CEO, said on Monday. He said the Pietermaritzburg-based group had focused on its core competencies....
Jamaican government still firm about sustainable exploitation of mineral resources
The sustainable extraction of Jamaica’s mineral resources that will help the community still seems to be a crucial policy objective of the Government as is often expressed by the Minister of Science, Technology, Energy and Mining Phillip Paulwell, despite the recent suspension of the red mud project. A Japanese company, Nippon Light Metals had invested US$ 5 million to set up a state-of-the-art pilot plant last year, completely financed by the company that looked into profitable extraction of rare-earth minerals from bauxite waste. There were even talks of commercialization of the project but due to unfavorable market conditions, both parties agreed to suspend the project. The full ownership of the project was transferred to the Jamaica Bauxite Institute (JBI). Now JBI has taken up the...
Aluminium industry unites to drive forward a recycling agenda for Europe
On the occasion of the 13th International Aluminium Recycling Congress, the European aluminium industry reaffirmed its ambition for a long-lasting circular economy, expressing high expectations for a new and improved waste proposal from the European Commission later this year. Speaking at the Congress, Chair of the EAA’s Recycling Division Roberta Niboli commented “In Europe and across the globe, we are faced with increasingly limited resources and the environmental and economic challenges that arise as a result. By taking concrete steps to promote resource efficiency in Europe and new models to guarantee a closed recycling loop, we can secure a steady supply of recyclable material to society, reduce our dependence on foreign imports and turn waste into new, innovative products over and...
German company Xolution to launch second generation re-sealable can ends
At a time when plastic bottles are facing plenty of criticism in the market for its lack of recyclability, the re-sealable technology for cans introduced by the German company Xolution may be the bridge between the convenience of the bottle and eco-friendliness of the can. The technology was introduced the XO closure two years ago following R&D of four years. The company now plans to expand its business by increasing production capacity to 400 million units annually in January 2016. The resealing mechanism is a sliding closure plastic strap joined to the aluminium shell that glides back and forth over the opening and has a tamper proof seal that assures the can has not been used or opened before. The first generation variants were seen in the market with companies like Vulcano in Brazil,...
Philipsburg Brewing Company to launch aluminium bottles for its beverage
Growth Through Agriculture (GTA) is a state agricultural grant that is issuing $50,000 to Philipsburg Brewing Company to launch aluminium bottles. The Head Brewer of the company, Mike Elliot said that the grant money will be used to set up a custom bottling machine to operate the new aluminium bottles. The GTA program is aimed at aiding small scale food and agricultural businesses get a leg up in business through grants and low-income groups. Elliot is ecstatic about the money that will help this local brewery that currently sells its 11 varieties of beers only by the glass, really grow its earning capabilities and expand as a distributor. The aluminium packaging was a conscious choice for its convenience like portability, safety and the fact that the metal seals in the flavor. Another...
Garmco appoints new CEO Jean-Baptiste Lucas to head next phase of expansion
Gulf Aluminium Rolling Mill Company (GARMCO), the Bahrain-based international aluminium rolling mill and one of the largest downstream aluminium facilities in the Middle East, today announced that the Board of Directors has recently approved the appointment of a new CEO, Mr. Jean-Baptiste Lucas, who will join the Company from 15 March 2015. Commenting Mr. Mahmood Al Soufi, Chairman of GARMCO, said, "We are delighted to announce that after an extensive search, Mr. Jean-Baptiste Lucas will join GARMCO as the Company's new CEO. He comes to us with nearly 20 years of international and regional experience in the aluminium industry including senior roles throughout Europe and his most recent position as Chief Marketing Officer at Alba in Bahrain." Mr. Al Soufi continued, "We are confident that...
North American Aluminum Demand Grows 5.0 Percent in 2014
The aluminum industry in the United States and Canada saw year-over-year demand growth of 5.0 percent through the end of 2014. This according to preliminary data released today in the Aluminum Association’s monthly “Situation Report.” The estimated 25.5 billion pounds of aluminum shipped by North American producers and fabricators last year is the largest shipment total for the industry since 2006. “We’re seeing steady demand growth across many of our key markets,” said Ryan Olsen, Vice President of Business Information & Statistics for the Aluminum Association. “Orders of aluminum mill products are also on the rise, a leading indicator of continued growth for the industry into 2015.” The “Aluminum Situation” is a monthly report of key statistical indicators on all segments and aspects of...
UK’s Bridgnorth Aluminium strives to protect local marshlands
Bridgnorth Aluminium, producer of high quality rolled aluminium products based in Shropshire UK, is taking a step forward to protect the Shropshire Meres and Mosses and educate the local businesses on how to reduce environmental impact on this natural wetlands. The company, despite being a core industrial establishment, has been one of the few regionally-based organizations who had come forward to launch the Meres and Mosses Business Environment Network last year. “Bridgnorth Aluminium has always strived for sustainable excellence, so it was important for us to support the initiative, educate local businesses, and share best practice tips to minimise environmental impact,” explained Neil Birt, Environmental Health & Safety Manager at Bridgnorth Aluminium. The wetlands located in north...
BHP Billiton spin-off looking rosier than core commodities
When global miner BHP Billiton reports its half-year results on Tuesday, the only parts of the company that are likely to report profit growth are some of the unloved assets it aims to spin off by June. Commentators had dubbed the company BHP plans to hand to shareholders "DudCo" before it was christened South32, as the aluminium, manganese, nickel, some coal and silver businesses barely contributed to BHP's earnings. But now those businesses are looking rosier as prices for aluminium and manganese are improving in a world where prices for BHP's four biggest products, iron ore, petroleum, copper and coal, have all collapsed to near six-year lows. Despite the improvement, BHP wants to shed the smaller assets so it can focus on its four core commodities, and still believes that shareholders...
Hulamin to invest R300m in aluminium recycling plant
HULAMIN based in South Africa’s Pietermaritzburg announced on Monday that they are planning to invest R300 million to construct an aluminium recycling plant that will convert aluminium beverage cans and convert them into raw materials for reuse. Considering that recycling aluminium scarp takes a fraction of the energy needed to smelt the primary metal, the local market will get recycled aluminium via gas-fired furnaces. The company reported a 96% increase in headline earnings per share according to the results for December 2014 results. The amount being invested for the recycling plants is mostly sources out of the five-year R270 loan acquired from Nedbank. Hulamin says their plans for 2015 include continued focus on core competencies and product streams. "Our efforts to simplify the...
The Fourth IBAAS symposium to be held at Suzhou China during November 25-27, 2015
The Fourth IBAAS symposium (IBAAS-CHALIECO-SINR 2015), an International Aluminum Industry Conference will be held in Suzhou (Near Shanghai), Jiang Su, China from November 25th to 27th, 2015 in cooperation with China Aluminum International Engineering Corporation Limited (CHALIECO). The conference will be organized by Suzhou Research Institute for Nonferrous Metals (SINR). The title of the IBAAS-CHALIECO-SINR 2015 symposium is "The Development and Future of Aluminium Industry in China - Reality and Dream” . The symposium organizing committee is formulating a world class program focusing on key topics and issues in the bauxite, alumina, primary aluminium and aluminium processing industry of the world with special reference to China. The Symposium will provide an excellent opportunity to...
Reliance Steel & Aluminum Co. reports fourth quarter and full year 2014 financial results
Fourth Quarter 2014 Financial Highlights • Sales were $2.58 billion, up 11.7% from $2.31 billion in the fourth quarter of 2013 and down 4.7% from $2.71 billion in the third quarter of 2014. • Tons sold were up 4.4% from the fourth quarter of 2013 and down 4.9% from the third quarter of 2014, with the average selling price per ton sold up 6.4% from the fourth quarter of 2013 and down 0.1% from the third quarter of 2014. • Net income attributable to Reliance was $92.3 million, up 49.4% from $61.8 million in the fourth quarter of 2013 and down 3.4% from $95.5 million in the third quarter of 2014. • Earnings per diluted share were $1.18, up 49.4% from $0.79 in the fourth quarter of 2013 and down 2.5% from $1.21 in the third quarter of 2014. • Non-GAAP earnings per diluted share were $1.01, up...
Custom Aluminum announces expansion plans at Genoa Chamber of Commerce’s gala
Receiving one of the Genoa Chamber of Commerce’s most prestigious awards was an honor for Michael Cirone, but it didn’t compare to another announcement he heard Thursday. During the Genoa Chamber of Commerce’s Annual Meeting, City Administrator Joe Misurelli announced that Custom Aluminum plans to add a 37,500-square-foot expansion to the company’s facility at 312 Eureka St. “I’m just a small speck in the big picture,” Cirone said. “To have that happen, it’s an amazing push in the right direction, which is what we’re all striving for. It’s to make it a better community.” Misurelli delivered the news to a crowd of more than 100 people who gathered at the Genoa Veterans Home for the 57th annual meeting. He said the company, which has been in Genoa since 2006, is going to add aluminum...
MRAI: Custom duties weigh heavily on scrap sales
Starting with customs duties paid for inbound scrap, metals recyclers and producers in India say their industry cannot gain momentum or even operate profitably until the government reconsiders its policies. Throughout two days of programming at the 2015 Metal Recycling Association of India (MRAI) International Conference, held in Mumbai in February, speakers and audience members returned regularly to the topic of India’s tax structure. “India is the only country in the world where there is an export duty on scrap and an import duty on scrap,” stated MRAI President Ikbal Nathani of Mumbai-based Nathani Industrial Services. Nathani, a ferrous scrap trader, pointed to a flood of low-priced steel billets pouring into India as a symptom of the import duty on scrap. “Now China is dumping...
