Increasing capacity expected for both bauxite and alumina

After a decade of little investment in alumina refining capacity, resulting in shortages in 2004 and 2005, Comalco in Australia commissioned the first new refinery to come on stream for 14 years in 2004, and there are plans for 42.5Mtpy of additional capacity globally up to 2010. However, while there have been some significant increases in bauxite capacity, and some 44Mtpy of new capacity is planned, there will be a bauxite deficit if the bulk of the planned alumina production expansions are realised. Following major expansions at MRN's Trombetas mine in 2002, and Comalco's Weipa mine in 2004, a number of major bauxite mining projects are at various stages of development. Paragominas (CVRD) and Mirai (CBA) in Brazil, Sredne Timan (Sual) in Russia, and Nuhulunbuy expansion (Alcan Gove) in Australia, are probably the biggest and most advanced. They are likely to add around 20Mtpy to total bauxite production capacity. Prices of metallurgical alumina are volatile, responding promptly to changes in the supply and demand balance. The market has thrived with the current shortages, resulting in prices of reaching US$420-$460/t in March 2005. The shortage of metallurgical alumina is expected to ease in 2006 with new capacity coming on stream, and this will be reflected in lower spot prices.

The key trends, issues and developments in the market are now analysed in this major new report from Roskill. It provides a clear insight into all areas of the industry and an authoritative analysis of the prospects for the future.

• Independent, in-depth research and analysis
• Essential market intelligence for successful business planning
• Detailed survey of production in 53 countries
• Up-to-date profiles of over 100 producing and processing companies and projects and their activities, including Comalco Ltd., MineraUKPo Rio do Norte, Alcan, and Cie. des Bauxites de Guine
• Forecasts for end-use consumption and world supply and demand