The global bauxite mining industry is expanding due to many causes, including the increasing demand for aluminium products. Aluminium is a highly adaptable and low-density substance used in diverse sectors such as automotive, aircraft, construction, packaging, and consumer products. As the sectors mentioned above see ongoing expansion, there is a foreseeable rise in the demand for aluminium and its primary raw material, bauxite.
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As per AL Circle's "Global Aluminium Industry Outlook 2023", the global bauxite supply is set to tread a growth path in 2023 with an estimated production of around 393 million tonnes. This is a 2.6 per cent increase over 2022, and this will be driven mainly by the two largest producers of bauxite in the world, viz. Australia and Guinea. Capacity ramp-ups and investments will cause this increase. Companies have taken up sustainable efforts to maintain the environmental balance along with their goals to achieve carbon neutrality in operations.
Based on a third-party source, the bauxite market is expected to reach 273.97 million tonnes in 2023 and grow at a CAGR of 3.81 per cent to reach 330.29 million tonnes by 2028. Also, the alumina and bauxite market is predicted to expand significantly, reaching a value of $98146.92 million by 2028. This illustrates a considerable gain in market value over six years.
It is worth noting that Guinea's bauxite production climbed by more than 4 per cent in 2022, mainly owing to higher output at the Boffa Bauxite mine, the Garafiri project, and increasing output from the Sangaredi mine. Prospects for bauxite production in 2023 remain bright, thanks to the start-up of major projects such as the Nhan Co Bauxite project in Da Nang, Vietnam. This specific project has a capacity of 590kt bauxite per year and is set to begin production in 2025.
The subsequent growth will be driven by the commencement of many novel initiatives, as about 25 bauxite enterprises are now undergoing diverse phases of advancement on a global scale. The primary countries that significantly influence the bauxite mining industry in terms of output include Australia, Guinea, China, Brazil, and Indonesia, among others. Australia was the foremost producer of bauxite in 2022. Several notable corporations, such as Rio Tinto, Alcoa Corp, and Norsk Hydro ASA, are leading the way in bauxite production, among others. In 2022, Rio Tinto established its pre-eminence within the bauxite mining industry by attaining the largest market share, with Alcoa and Norsk Hydro following suit in output.
Key investments and future plans in Bauxite industry:
- Alcoa, a significant global aluminium manufacturer based in the United States, is actively and fast adopting efforts to decrease its environmental effect and employ cleaner energy sources at its bauxite mining operations in Juruti, Brazil's Pará state. Alcoa plans to begin a project to convert from fossil-fuel-fired generation to grid-connected power supply shortly. The project, expected to be completed in 2026, would cut greenhouse gas emissions by about 35 per cent while simultaneously lowering plant energy costs in the long term.
- The development phase of the Koumbia bauxite project was inaugurated by Dr Bernard Goumou, the Prime Minister of Guinea. The projected cost of the project is around $1 billion. The Koumbia mining concession has an area of 728 square kilometres and comprises the surface of 15 successive plateaux containing high-quality bauxite.
- Metro Mining Limited has signed a financing agreement for up to $30 million to expand its Bauxite Hills Mine in Western Cape York, Queensland. The funds come from Nebari Holdings' Nebari Natural Resources Credit Fund I, LP and II, LP.
- Vietnam has invested $1 billion in Laos to develop a bauxite-alumina mining complex in the Dakcheung region. The mine covers 8.692 hectares and has an annual production capacity of 1 million tonnes of aluminium ore. It is expected to last 30-50 years.
- Camalco and NEF have formed a joint venture to investigate the Minim Martap bauxite deposit in Cameroon. Camalco intends to recruit suitable employees from NEF's job seeker database. During the cruising phase, the project's employment might grow to 2,000 people. The deposit has a potential of 892 million tonnes, including 250 million tonnes of "extremely high grade" material suitable for producing aluminium. The remaining 63 plateaus should increase the deposit's potential to about 2 billion tonnes, making it the world's most significant deposit.
- Canyon Resources Limited, a bauxite development and exploration firm, has signed a subscription agreement with Singapore's Eagle Eye Asset Holdings (EEA) for an investment of up to A$59.7 million in its Minim Martap Bauxite project in Cameroon. The project has 108.91 million tonnes of known ore reserves, capital expenditure of $253 million, and a competitive C1 operating cost of $23.95 per tonne of 51.1 per cent alumina export output. EEA intends to subscribe for A$10.5 million in new fully paid Canyon shares and execute its existing 202.9 million options to buy the same number of shares. Canyon Resources intends to grant EEA 500 million unlisted options with an exercise price of 7 cents and an expiry date of December 2026, pending shareholder approval. The agreement represents a watershed moment in Canyon Resources' journey, strengthened by EEA's strategic cooperation and a fresh motivation to propel the project towards successful production and long-term development. The firm seeks board permission to nominate Gaurav Gupta as a non-executive director. Upon completion, EEA will appoint two new directors to Canyon's board of directors.
- Vietnam is putting a lot of effort into developing a modern bauxite mining sector. By 2045, Vietnam intends to explore a range of minerals, including bauxite, in accordance with its national strategy. The country aspires to construct an advanced and contemporary mining and mineral processing industry linked to a circular economy model, a green economy comparable to that of developed countries in Asia, by 2045, according the geological and mineral strategic plan.
- Guinea plans to increase its bauxite production from 86 million tonnes in 2022 to 130 million tonnes by 2025. It also plans to develop new bauxite projects, such as the Bel Air mine, the GAC project, and the Sangaredi mine. Some of the major bauxite mines in Guinea are CBG's Sangaredi, SMB's Boké, and Rusal's Kindia mines.
