Upstream weekly recap: Significant price increases for alumina reflect growing market demand; Vedanta launches 37-km rail project to boost coal transport
Aluminium is an essential component of the global economy, and its growing demand underscores its lasting importance. Despite occasional challenges or disruptions, the market for sustainable aluminium will continue to grow, reflecting the unrelenting need for this eco-friendly material.
To begin with, Vedanta Aluminium officially announced that the new 37-km Sardega-Bhalumuda rail project, connecting Odisha and Chhattisgarh, will facilitate smoother and faster transportation of coal from the company's mines once it becomes operational. Apart from this, under the alumina segment, alumina's price also recorded a surge of RMB 7 per tonne on Wednesday (September 18), followed by a growth of RMB 18 per tonne the next and RMB 13 per tonne on Friday. The increase in prices highlights the growing demand for alumina. Another important event is that Saudi Arabia has reaffirmed its commitment to strengthening its presence in the metals and mining sector to make it a third pillar of the kingdom's economy. Ma'aden, Saudi Arabia's leading mining company, has finalized an agreement to acquire SABIC's 20.62% stake in Aluminium Bahrain (ALBA). This acquisition underscores Ma'aden's commitment to regional expansion and aligns with its ambitious goal of achieving tenfold growth by 2040.
On Friday, September 20, Vedanta Aluminium officially announced that the new 37-km Sardega-Bhalumuda rail project, connecting Odisha and Chhattisgarh, will facilitate smoother and faster transportation of coal from the company’s mines once it becomes operational. Recently, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved three railway projects, including the Sardega-Bhalumuda New Double Line.
Owing to the unprecedented demand for alumina, the price of the average alumina had clocked a significant hike. As of Wednesday 18, the SMM alumina price had grown by RMB 7 per tonne, followed by a hike of RMB 18 per tonne and RMB 13 per tonne on Friday. This significant growth in China’s domestic alumina price highlights the growing demand for alumina to support the increased production of primary aluminium.
Saudi Arabia reaffirmed its commitment to strengthening its presence in the metals and mining sector, with the goal of making it a third pillar of the kingdom’s economy. A central element of this strategy involves acquiring control of Bahrain’s aluminium smelter and building a portfolio of assets in global companies.
To know more: https://www.alcircle.com/news/saudi-arabia-aims-to-establish-a-strong-presence-in-the-aluminium-industry-through-alba-112031
Ma'aden, Saudi Arabia's leading mining company, has finalized an agreement to acquire SABIC's 20.62% stake in Aluminium Bahrain (ALBA). This acquisition underscores Ma'aden's commitment to regional expansion and aligns with its ambitious goal of achieving tenfold growth by 2040.
To know more: https://www.alcircle.com/news/ma-aden-expands-regional-presence-with-sabics-20-62-stake-in-alba-112011
On September 19, 2024, the UK embassy in Jakarta announced the signing of a memorandum of understanding (MoU) between Britain and Indonesia to strengthen collaboration on critical minerals. As Southeast Asia's largest country with abundant mineral resources, Indonesia will partner with the UK to boost policy dialogue, share technical expertise, and develop key areas such as supply chain resilience, sustainable processing (upstream and downstream), and the evaluation of mineral criticality.
To know more: https://www.alcircle.com/news/britain-strikes-critical-minerals-agreement-with-indonesia-to-ensure-resource-security-112020
Jamalco, the Jamaica-based bauxite mining and alumina production company, has successfully reopened its Rocky Point port after extensive repairs, allowing for the resumption of normal shipping operations. The port's conveyor system had been damaged by storm conditions from Hurricane Beryl, which passed offshore on July 3, affecting Jamaica's southern coast.
To know more: https://www.alcircle.com/news/century-aluminum-resumes-alumina-shipping-operations-at-jamalcos-rocky-point-port-112006
In the second quarter of 2024, U.S. bauxite imports saw a year-on-year decline due to reduced demand for raw materials, driven by lower primary aluminium production during the same period. According to the United States Geological Survey, bauxite imports dropped by 28 per cent Y-o-Y, while primary aluminium output decreased by 12 per cent in Q2 2024.
China's bauxite imports hit a new monthly record in August 2024, surpassing the previous month with a 3.64 per cent month-on-month increase and a significant 34.23 per cent year-on-year surge. The country continued to boost its bauxite import volumes, capitalizing on lower international prices compared to domestic rates. In August, the average domestic price was US$89.24 per tonne, while the imported price stood at US$75.77 per tonne, reflecting a difference of US$13.47 per tonne.
Canyon Resources Limited has achieved a significant milestone by securing the Mining Licence for its Minim-Martap Bauxite Project in Cameroon. This follows the approval of the Mining Convention in July 2024, demonstrating strong support from Cameroonian authorities. The official signing ceremony was attended by Canyon Resources' CEO, Jean-Sebastien Boutet, and the Interim Minister of Mines, Industry and Technological Development, Professor Fuh Calistus Gentry.
To know more: https://www.alcircle.com/news/canyon-resources-secures-mining-licence-for-minim-martap-bauxite-project-in-cameroon-111998
Vedanta Aluminium, India's largest aluminium producer, is currently addressing a breach in its process water storage facility at the Lanjigarh alumina refinery in Odisha. The breach occurred in the early hours of September 15, 2024, following unprecedented rainfall in the region.
Jamalco, the Jamaica-based bauxite mining and alumina production company, has successfully reopened its Rocky Point port after completing extensive repairs, allowing normal shipping operations to resume. The conveyor system at the port was damaged due to storm conditions from Hurricane Beryl, which passed offshore on July 3 and affected Jamaica's southern coast.
According to the International Aluminium Institute (IAI), alumina production in the Americas reached 1.179 million tonnes in July 2024, with South America contributing 83.88% and North America 16.12 per cent. In contrast to the primary aluminium sector, South America leads the alumina industry, outpacing North America.
Press Metal Aluminium Holdings has announced a partnership with three Indonesian companies to establish and operate an alumina refinery in West Kalimantan, Indonesia. The refinery is expected to produce between one and 1.2 million tonnes annually in its initial phase, with plans to double that capacity in the future.
Aluminium Bahrain B.S.C. (Alba) has made a significant move to reshape the global aluminium landscape. In a meeting on September 16, 2024, the company’s Board of Directors approved entering into a non-binding agreement with Saudi Arabian Mining Company (Maaden) to initiate due diligence on a potential business combination.
To know more: https://www.alcircle.com/news/alba-eyes-strategic-partnership-with-maadens-aluminium-business-in-new-agreement-111995
Calderys unlocked a significant milestone in its global growth strategy with the launch of a project earlier this year in Odisha, India. This facility will be the world’s largest single-site greenfield plant dedicated to refractories and steel casting fluxes.
To know more: https://www.alcircle.com/press-release/calderys-invests-in-a-major-single-site-greenfield-plant-in-india-112015
The European Union's approach to Russian primary aluminium imports has significantly transformed in a landscape marked by evolving geopolitical tensions, as revealed by a recent report by Eurasia Strategic Consulting. While presently, any formal sanctions on Russian aluminium remain absent, other than the earlier ban on the aluminium wire rod, foil, tubes, and pipes supplied from Russia, the practical reality of self-sanctioning by European importers and the ripple effects of secondary sanctions have dramatically altered the market dynamics.
To know more: https://www.alcircle.com/news/russian-aluminium-s-share-in-eu-imports-falls-amid-sanction-pressure-112024
On Monday, the LME aluminium benchmark price had surged by US$100 per tonne to settle at US$2,505 per tonne, followed by a growth of US$0.5 per tonne on Tuesday to halt at US$2,505.50 per tonne. On Wednesday the price had moved up by US$0.57 per tonne and on Thursday it increased by US$3 per tonne.
To know more: https://www.alcircle.com/news/lme-aluminium-price-adds-us3-t-to-us2523-t-shfe-price-ascends-to-us2844-t-112028
According to the National Bureau of Statistics (NBS), China's aluminium production in August 2024 remained robust, showing an annual growth of 2.5%. This increase is attributed to strong profits resulting from higher aluminium prices, prompting domestic smelters to boost their production to 3.73 million tonnes for the month.
The Public Enterprise Selection Board (PESB), a prominent body established by the Government of India, has appointed Brijendra Pratap Singh as the next Chairman-cum-Managing Director (CMD) of National Aluminium Company Limited (NALCO), a Schedule 'A' Central Public Sector Undertaking (PSU).
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