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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Sesa Sterlite still awaits bauxite linkage
The Sesa Sterlite Limited’s (previously Vedanta Aluminium Limited) Rs52,000-crore investment in Odisha is the largest on ground investment made by any company in the State ever. Still, the future of the project is hanging fire owing to the delay in policy decision mechanism of the State Government. Despite numerous requests made by the company to solve its issues, the progress is next to zero. The SSL has already set up a one-million-tonne-per-annum (MTPA) alumina refinery and an associated 75-MW captive power plant at Lanjigarh, a 0.5-MTPA aluminum smelter and a 1215-MW captive power plant and a 2400-MW Independent Power Plant at Jharsuguda. The 25-MTPA smelting plant is also ready for commercial production at Jharsuguda. However, the company has been facing difficulties in get going for...
Jinjiang Group to build 2 million-tpy alumina using coal ash in Inner Mongolia
Jinjiang Group inked an agreement with the government of Hohhot, Inner Mongolia, over 2 million-tpy alumina production from coal ash, a waste of byproduct from thermal power generation, cnmn website reported today. Thermal power plants in Hohhot generate up to over 10 million mt of alumina-rich coal ash each year, providing sufficient input for alumina refining, it added.
“One of our main focuses right now is leveraging our sector-leading position in bauxite including in supporting the Middle Eastern aluminium sector.” Amir Mirchi, Regional Vice President, MENA, Rio Tinto
Amir Mirchi is regional head of Rio Tinto for the Middle East and North Africa (MENA) in charge of Rio Tinto’s regional business management supporting the company’s strategic initiatives, operations, investor relations and joint venture relationship management. He has several years’ experience in various aspects of business such as joint venture and alliance development, corporate strategy development, business acquisition, business realignment, major project implementation and divestiture as well as R&D management. Mr. Mirchi discussed with AlCircle the current projects and future strategy of Rio Tinto in the Middle East Region and the growth prospect of Middle East in the aluminium sector. Excerpts from the interview: AlCircle: Rio Tinto’s aluminium business is taking a back seat for...
Illegal mining on Solomons' Rennell Island
The Solomon Islands Government has ordered a stop to mining on Rennell Island, after a company disregarded the cancellation of its licence. PT Mega Bintang Borneo Ltd was told to halt mining and remove all its equipment on December the 23rd, but according to the Solomon Star, is still operating. The Permanent Secretary of the Ministry of Mines, Energy and Rural Electrification, Jeffrey Kauha, says it is a criminal offence and legal action will ensue if the company does not comply with the orders. The newspaper reports the Solomons government has granted Asia Pacific Investment Development a lease to mine the bauxite deposit on Rennell. PT Mega Bintang Borneo Ltd had its licence granted by the previous government, voted out in November.
Secret ruggedness test for the aluminium F-150s proves beneficial
The secret ruggedness test for the aluminium F-150s at the Barrick Gold’s Bald Mountain and Cortez mines, Nevada, turned out beneficial for Ford with 35 new truck orders coming their way. The test started in 2011 and mine workers did not find anything different about the exterior of the car despite having an aluminium-alloy cargo box and body. The only thing that struck them odd was that the magnetized tools like the GPS did not stick to the vehicle-body. "But we didn’t put a whole lot of effort into trying to figure it out," said Mike Sena, a miner at the site. Rebecca Caudill, Barrick Gold USA fleet manager in a statement that the trucks were exposed to extremely rugged conditions, especially during the planning and mapping out of new projects. Trucks are extensively used around the...
China aluminum semis exports rise 48.5% in December 2014
China exported 490,000 mt of aluminum semis in December, surging 109.5%YoY and 48.5% MoM, customs data showed. The significant rise was driven by token exports of extrusions – low-value extrusion for remelting at destination before being used as a substitute for primary aluminum. China exported 195,000 mt of aluminum plate/sheet and strip, and 77,000 mt of aluminum foil in December. As expected, rising SHFE/LME aluminum price ratio allowed outbound shipments to rise slightly from a month ago. However, exports of aluminum extrusion spiked 254.05% YoY and 175.76% MoM to 182,000 mt in December, well above expectations. Liaoning Province exported 120,200 mt of aluminum extrusion, up 1,972.4% MoM. Vietnam imported 37,500 mt of aluminum extrusion from China, up 1,036.4% MoM, and Malaysia...
EPA faces the challenge of cleaning up Alcoa’s abandoned Point Henry Smelter
The environmental guardians of Victoria are up for a challenge with a massive rehabilitation project for the defunct Point Henry smelter looming close which will test their ability to deal with the daunting task. The Environment Protection Authority has faced a lot of flack lately as the current laws are not upgraded to deal with modern-day issues and a review is necessary to assess their power and legislation, said Lisa Neville, Victorian Environment Minister. The Point Henry aluminium smelter, which closed down last year, has left a vast area of abandonment and waste in its wake. The total area owned by Alcoa in the premises is 575 hectare of which 500 hectares lie outside the plant perimeter. Ms Neville believes that Alcoa would be footing the expensive clean-up bill saying "At the...
IAI will stop reporting aluminium inventory updates due to insufficient data
The International Aluminium Institute has declared that they would no longer report the global inventory stocks making it even more difficult to estimate the actual aluminium stocks available across the world. It is already accused that the price of aluminium is manipulated by banks and traders who hoard the metal in both LME-registered warehouses as well as offsite warehouses to hike up the prices and making it difficult to pinpoint exactly how much metal is actually available in the market. Rental revenues are another way the hoarders generate earnings boosting the aluminium premiums, the amount paid above the LME price to attain the physical metal. The premiums are still high despite the various regulatory scrutiny and reforms in the LME warehouse rules. IAI said in a statement that...
Altech Chemicals Limited quarterly report December 2014
Highlights: Name change to Altech Chemicals Ltd The Company's name was officially changed to Altech Chemicals Ltd on 10 November, 2014 New ASX ticker code: ATC Altech selects Johor Bahru (Malaysia) for HPA plant site HPA processing plant will be based in Johor Bahru (Malaysia) Estimated opex ~40% lower compared to Australianbased operation Capex for HPA plant estimated at ~50-60% lower Letter of Intent (LOI) to reserve lot in Johor Bahru's Tanjung Langsat Industrial Park Local environmental consultant appointed to assist with project approvals BFS optimisation of HPA plant output Altech's Bankable Feasibility Study (BFS) confirmed an optimised annual production rate for the proposed HPA plant Plant annual production rate increased to 4,000tpa Altech optimises Meckering beneficiation...
Queensland Bauxite reports strong cash balance to support project development
Queensland Bauxite has reported $4.34 million in cash reserves as it embarks on the next stage of positioning its South Johnstone bauxite project for development. During the September quarter, QBL defined at initial JORC Indicated Mineral Resource and a Scoping Study that detailed financial outcomes and profit metrics for a direct shipping ore (DSO) bauxite mining and export operation. The company noted it is continuing discussions with refineries and commodity trading groups toward best development option. Applications for environmental approval and a Mining License are underway to enable production to commence in 2015. Capital expenditure reported in the Scoping Study was relatively low befitting a mining and quarrying operation to produce a DSO product with a favorable location to the...
ICRA suggests aluminium producers to focus on the export market
The ICRA declared that to ensure healthy capacity utilization of the newly commissioned greenfield projects, primary producers will need to focus on the export markets. The energy costs remain a key factor in the primary aluminium production and since the Supreme Court de-allocated some of the coal blocks that were earlier assigned to the greenfield projects, the concern has become more potent. The energy-intensive smelters need to look for viable alternate sources to ensure economic aluminium production, said ICRA. In the period between April and September, 2014, India’s primary aluminium production jumped by 5.6% as realizations improved and the price of some key consumables softened. However, if the producers are not able to secure feasible coal blocks, the cost of production will...
Alba announces the appointment of two new managers
Aluminium Bahrain B.S.C. (Alba), one of the leading employers in Bahrain, is pleased to announce the appointment of Talib Hussain Al Ansari as Manager Workshop and Maintenance Services and Khalil Ebrahim Mohammed as Manager Reduction Line 4. Taleb Al Ansari joined Alba 1996 as a Trainee Supervisor, Casthouse and grew up the ladder in various departments including Casthouse and Workshop & Maintenance Services. He was made Superintendent Vehicle Maintenance in 2006 and consequently promoted to Senior Superintendent in 2014. A BSc graduate in Electric Engineering from the University of Bahrain, Taleb is currently pursuing Executive MBA from Ecole supérieure des sciences économiques et commerciales (ESSEC). Khalil Ebrahim Mohammed started his career in Alba as a Process Control Shift Operator...
Novelis to Host Third Quarter Fiscal Year 2015 Earnings Conference Call on Monday, February 9
Novelis Inc. will report its earnings for the third quarter of fiscal year 2015 on Monday, February 9, 2015. Following the release, President and Chief Executive Officer Philip Martens and Chief Financial Officer Steve Fisher will discuss the results via a live conference call for investors at 8:00 a.m. ET the same day. The conference call will also be webcast live via the Novelis website, with presentation materials available online at Novelis’ website in the investors’ section. The audio portion of the meeting will be available via telephone at: U.S. and Canada Toll-Free Number: 800 732 6870 India Toll-Free Number: 0008008521504 International Toll Number: +1 212 231 2905 Participants should access the conference 15 minutes in advance of the start time to complete the registration...
Aluminium-bodied cars receive “green” awards at Washington Auto Show
“Green” Awards were handed out to aluminium bodied cars at the Washington Auto Show’s Public Policy Day held between Jan 23 – Feb 1, 2015. The Award for the Green Car Technology was given to the aluminium-bodied Ford F-150, 2015 model while the BMW i8 received the Luxury Green Car of the year. "The Ford F-150 is honoured with the 2015 Green Car Technology Award for its milestone use of an all-aluminium body that takes light-weighting to new levels in the pickup field, enabling the all-new 2015 F-150 model to shed up to 700lb for greater efficiency and performance," the show organizers said in a statement. The BMW, a plug-in hybrid sports car has a dual chassis made of aluminium and carbon fiber bagged the award beating other cars in the category including Tesla Model S and the Audi A8.
Bell Bay Aluminium power price hikes 'may cost jobs'
One of Tasmania's biggest electricity consumers has warned the State Government that rising electricity costs are threatening its viability. In a submission to a Senate committee looking at electricity companies, Bell Bay Aluminium noted there had been a 200% increase in transmission charges over five years. The Launceston-based company said the price rises had "crippled investment" from the small number of big industrial users in the state and was "undermining and threatening" its own viability. The submission said although the merger of Aurora's distribution arm and Transend Networks, to form TasNetworks, had created $8 million in savings for the company, the gain was "insignificant" compared to the spike in transmission charges. Bell Bay Aluminium said it had exhausted all cost-saving...
Chalco expects $2.6bn loss in 2014
China’s state-owned aluminium producer, Aluminium Corp of China (Chalco), is expecting a loss of 16.4 billion yuan ($2.6 billion) for 2014 due to low aluminium prices and impairment charges. Impairment charges are seen in many areas like a 5.5 billion yuan impairment charge in Chalco’s earnings where 3.3 billion yuan in attributed to the 800,000-tpy Chongqing alumina project that has been suffering losses owing to the low alumina prices. Impairments worth almost 1.4 billion yuan are found in the four subsidiaries of the Chalco Ningxia Energy Group related to the silicon industry according to Chalco’s filing in the Hong Kong Exchange. In 2013, Chalco had swung towards profits of 948 million yuan as a result of some cost cuts and selling of assets and spurred by the global aluminium...
Brazil faces the possibility of electricity rationing; aluminium production at risk
Brazil is staggering from the lack of rain in the country as it is drying up water sources and putting hydroelectricity generation at risk. Now with the growing risk of power rationing, the country’s current aluminium industry is destined to suffer even more. Electricity is an absolute necessity for aluminium production, in fact, large amounts of it is required. The scarcity in electric power has already resulted in major production cutbacks in the country, leading them from being a key exporter to being an importer of the metal. On Thursday, January 29, the premiums for P1020A to be delivered to São Paolo were $600-650 per ton. Precipitation levels in the south-east region of the country are one-third of what it should be considering this is the middle of their rainy season. Reservoir...
Mitsui completes the purchase of shares in GARMCO Singapore
Bahrain-based Gulf Aluminium Rolling Mill Company (GARMCO), one of the largest downstream aluminium facilities in the Middle East, and Mitsui & Co., Ltd. together with Perse Metals Pte Ltd today announced that they have completed a transaction, which results in Mitsui’s purchase of a 25% interest in GARMCO Singapore, a company owned by GARMCO and Perse. Headquartered in Singapore, and with subsidiaries in Thailand and China, GARMCO Singapore is one of the largest non-ferrous service centers in Southeast Asia, where it reprocesses and distributes aluminium coils and sheets, thick plates, bars, extrusions, as well as other wide range of metals products. GARMCO will remain as the majority shareholder of this joint venture. GARMCO and Mitsui will endeavour to expand GARMCO Singapore’s...
