Global slump in bauxite demand leads to stockpile rise to 70,000 tonnes

In the face of declining demand for bauxite, worldwide, a total quantity of 70,000 tonnes of the ore valued at about $1.4 million is reported to have been stockpiled at the Aurum Exploration (Fiji) Ltd in Nawailevu, Bua.

Mr Derek Qiu, executive Aurum Exploration said about half of the mining operations across the world would close if the situation persisted. The company reported of having only two shipments this year against a standard six or seven that were done in the previous years. Mr Qiu attributed this lowering in number of shipment to the negative demand scenario of bauxite in the global marketplace.

The company is also feeling the heat due to economic slowdown that is prevailing all over the world and sharp decline in prices of other ores, he said.

Aluminium prices had indeed plummeted amidst a global oversupply of the metal caused due to rising exports from the largest producer China. Exports of the unwrought variety and fabricated aluminium from the country surged 43 per cent to 1.2 million in the first quarter of this year. This further added to the glut sending ripples across the entire value chain.

Alcoa, one of the world's largest producer of aluminium projected that there will be a big surplus of 326,000 tonnes of the white metal in 2015 compared with a deficit forecast of 38,000 tonnes made in January.

Meanwhile, the Fiji based mining company will have to maintain a stock of bauxite until the demand for the ore improves in the world market.