Australia stands as a major global player in aluminium production. As per AL Circle's report, Australia continues to be the second major producer and the biggest exporting country of alumina in the world. The country is estimated to have produced around 18.25 million tonnes in 2023-24, a decrease from 18.97 million tonnes in 2022-23.
According to various sources and AL Circle's forecast, Australia's alumina production for 2024-25 & 2025-26 is to attain 16.39 million tonnes (approx.) & 16.28 million tonnes (approx.), respectively. The forecast is that there will be a dip due to the production curtailment at the Kwinana refinery.
As per EnergyQuest, the alumina and aluminium sectors generate more than $13 billion in export earnings each year, underpinning a total industry value that exceeds $15 billion. And at the core of this success story is Western Australia (WA), home to some of the world's biggest bauxite mines and alumina refineries.
Yet, this industrial giant is entering turbulent waters. Australia, despite its abundant natural gas reserves, is confronting twin energy crises - one on the east coast, the other in Western Australia. This energy crisis is expected to impact both the aluminium and the alumina industry.
How will this impact both the alumina & aluminium industry?
The alumina and aluminium industry in Western Australia is poised to bear a heavy cost burden from the state's deepening gas crisis. With wholesale gas prices more than doubling since 2019 and Woodside and Santos prices up by 96 per cent and 68 per cent respectively since 2020, refineries that rely on gas for the energy-intensive Bayer process face a steep rise in operating expenses. Below is a graph showing how sharply the prices have grown for two of Australia's leading oil, gas, and LNG producers -
Events
e-Magazines
Reports
Responses
