The primary driver of bauxite demand is aluminium production, which is anticipated to rise in response to increasing demand from the building, transportation, and packaging sectors. In 2021, the global bauxite market was valued at $15.59 billion, and from 2022 to 2030, it is forecast to grow at a CAGR of 1.7 per cent. The demand for aluminium is expected to increase due to favourable government regulations for electric vehicles (EV) and increased investment in manufacturing lightweight automobiles. As a result of this development, the bauxite business is likely to expand during the projection period. The United States holds a significant portion of the North American bauxite market. It is envisaged that increased production of cement and aluminium will help the market expand. The Aluminum Association estimates that as aluminium is the most often utilized material by automakers, the quantity of aluminium used per vehicle in the United States will increase to 514 pounds (lbs) by 2026.
Among the numerous developments that occurred in the year, the following are the most significant in 2022:
OPCL replaces Bosai Minerals by acquiring 80% of the Ghana Bauxite Company
The Ghanaian holding company, Ghana Integrated Aluminium Development Corporation (GIADEC), dealing with all government investments and interests in the nation's integrated aluminium business, has introduced OPCL as the new majority shareholder of Ghana Bauxite Company (GBC) to the traditional leaders, Chiefs and people of Ahwiaso and Sefwi Bekwai in the Western North region. A 100 per cent owned Ghanaian company, OPCL, in March 2022, acquired 80 per cent shares in GBC, which a Chinese mining giant previously held, Bosai Minerals Group Limited, while the remaining 20% is owned by the Government of Ghana (GoG). The Chinese mining firm Bosai Minerals backed out of operations and left the country.
Metro Mining extends strategic partnership with Xiangsen Aluminium for bauxite supply until 2026
The Australian mining and exploration company Metro Mining Limited has extended the Strategic Cooperation Agreement with China's Xiamen Xiangsen Aluminium Limited (Xiangsen) for 1.5 million DMT per annum for two years until 2026. In addition, binding terms for the 2023 offtake component have been agreed upon, making the total binding offtake for 2023 5 million WMT. It was announced on November 25, 2022, that Metro would supply approximately 5 Million WMT of bauxite between 2022 and 2024 to Xiangsen Aluminium. This supply agreement has been extended by a further 3.4 million WMT over two years into 2026. As a result of this agreement, the medium-term sales portfolio continues to evolve toward a more diverse set of quality specifications, pricing periods, and formulas to diversify exposure to market trends. Currently, the Bauxite Hills Mine and supply chain are operating at full capacity and will continue until 2023, when the expansion to 7 Mt/a capacity is complete.
Bauxite blocks auction in India to be more competitive following Adani Group's entry into the aluminium sector
As Adani Group charts an entry into the alumina refining sector and existing players seek to expand capacity, the following auction for bauxite blocks in Odisha may see strong interest. Hemant Sharma, the Principal Secretary of the Odisha Industries Department, said three bauxite blocks had been scheduled for auctions this year. Adani Group will be establishing a 4-MTPA alumina refinery and may enter aluminium production; hence it is anticipated to bid for mines. However, raw material linkages will be available to Odisha Mining Corporation (OMC). Raw material security may be necessary due to the scale of the proposed project.
SRG Global wins $80 million mining contract in Australia
The leading drill and blast contractor serving the mining industry, SRG Global, has fastened a noteworthy new contract from its existing Tier 1 client valued at around $80 million. The existing SRG’s agreement with South32 gets an extension for another two years for works at the Worsley Alumina’s bauxite and alumina refinery operations in WA. The contract underpins the work delivery of civil services for the uninterrupted up-gradation of its BRDA embankments as well as other civil and road maintenance services. However, the contract will initiate immediately and is anticipated to conclude in 2024. For works at Kwinana Bulk Jetty in Western Australia, Fremantle Ports has a contract with a two-year duration, with the option of an additional year.
Ghana's bauxite industry foresees $10 billion Chinese investment
The senior presidential advisor to the Akufo-Addo Administration, Senior Minister Yaw Osafo Maafo, stated that Ghana could generate 100,000 jobs from a $10 billion loan agreement with China. In 2017, the Chinese government committed a sum of $15 billion to support developmental projects in Ghana. The Chinese government in 2017 had committed a sum of US$ 15 billion to developmental projects in the West African nation. Mahamudu Bawumia, the Vice-President of Ghana, pointed out that the country would grasp its resources in cooperation with China and anticipates the investments to be utilized to enhance the economy. However, he emphasized that the China Exim Bank and other partners were committed to supporting Ghana.
Military junta in Guinea influencing bauxite and other mining firms to yield more revenues
The West African nation, Guinea which is recognised as the world's biggest exporter of bauxite, is currently ruled by the Guinean military junta’s resolution to amplify the revenue generation from its bauxite and iron ore resources is anticipated to hurt the Chinese endeavour to make an invasion into the bauxite rich nation. However, despite all the assurances delivered by the present government that it would respect all the “existing regulations, contracts and investments” following the dethroning of Alpha Condé as President in September 2021, Guinea has been deploying more pressure on foreign mining firms. Freshly, it instructed foreign companies to design a plan for locally processing bauxite into alumina construct, and in March, the government also suspended operations at Simandou, the nation’s biggest iron ore reserve. The Chinese metal and mining companies have mighty investments in Guinea, which is the world’s leading producer of bauxite. It must be noted that about half of China’s bauxite imports are from Guinea.
Jamaica govt. steadfast to sustainable bauxite mining prioritizing environmental safety
The Jamaican Minister of Mining and Transport, Audley Shaw, stated that the Caribbean Island government is resolutely guaranteeing sustainable bauxite mining in the country to protect the environment. The minister assured the country that even as bauxite mining continues, the government will pay more attention to environmental issues. He further said, “We will ensure that we do what we must to protect the environment and have proper land reclamation so that our farmers can still use our land and so on." Audley Shaw advocated for the pertinent stakeholders and environmentalists to work closely with the Jamaican government to enact sustainable solutions.
Bauxite shipments from Guinea gain momentum as China's reserves deplete
The soaring energy prices in Europe have caused a severe impact on aluminium production and shifted output to China. However, due to China’s increasingly depleted bauxite reserves, this repositioning has increased bauxite shipments, benefitting the West African nation, Guinea, the world’s largest exporter of bauxite, which accounts for around half of traded volumes and has seen a 14.9 per cent growth in bauxite shipments by now in 2022. As a result of growth in bauxite and coal volumes, capsizes have been relieved this year. A decline in Chinese iron ore demand and reduced congestion has caused the Baltic Exchange's Capesize 5TC index to fall on average 50.6 per cent Y-o-Y.
Indonesia to impose a ban on bauxite exports from June 2023
The President of Indonesia, Joko Widodo, announced on December 20, 2022, that the nation would ban bauxite exports, the primary ore source of aluminium, starting from June 2023 to boost the domestic processing of the material. Indonesia ranks among the world's largest bauxite suppliers, with China as a significant consumer. The bauxite export ban's timing complies with Indonesia's present mining regulations. During an economic forum, the Indonesian President said Indonesia would announce a ban on commodity exports without disclosing which or a timeframe for implementation. Exports of other unprocessed minerals, such as copper, are prohibited under Indonesia's current mining law. However, the President did not specify when the bans on shipments of the other materials would be implemented. According to Indonesian customs data, China imported 17.8 million tonnes of bauxite from Indonesia in 2021 and 17.98 million tonnes in the first 11 months of this year, about 15.6 per cent.
ASI certifies Mineração Rio do Norte – MRN, the largest Brazilian bauxite producer and exporter against Performance Standard
The Aluminium Stewardship Initiative has reportedly certified Mineração Rio do Norte – MRN against the Performance Standard certification for bauxite mining operations and power generation at the Porto Trombetas facility in the State of Pará, Brazil. Their activities include the planning, mining, transport, processing, and river shipment of bauxite and power generation. Mineração Rio do Norte is the largest Brazilian bauxite producer and exporter, with an annual production of over 12 million tonnes per annum. Fiona Solomon, Chief Executive Officer at ASI, said, “We warmly congratulate MRN on achieving ASI Performance Standard Certification at its Porto Trombetas operations. Even though the significant focus in the aluminium sector is currently on GHG emissions, bauxite mining also has been in the spotlight regarding key ESG issues, including Indigenous Peoples’ rights, impact on local communities, dust control, biodiversity management, and appropriate rehabilitation post-mining, among others. These are all key parts of the ASI Performance Standard, and MRN’s certification demonstrates that its priorities and values are consistent with responsible mining and production of bauxite.”
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