Upstream Weekly Recap: South32 reports strong production gains in Q1 FY25; Hydro reports solid financial performance in Q3
Aluminum plays a crucial role in the global economy, and the increasing demand for this green metal highlights its enduring importance. Despite occasional setbacks or fluctuations, the market for aluminium remains resilient. The upstream aluminium sector, which includes bauxite, alumina, and primary aluminium, has recently experienced several noteworthy developments.
To begin with, South32 Limited, a mining and metals company based in Perth, Western Australia, reported increased production across its operations in the first quarter of the 2024–25 financial year (Q1 FY25). The company, which follows the Australian financial year from July 1 to June 30, has maintained its production guidance. Norsk Hydro, the Norwegian aluminium and renewable energy company, has announced its third-quarter and nine-month results, highlighting a solid financial performance fuelled by rising alumina and aluminium prices. Qatar Aluminium Manufacturing Company (Qamco) reported a 21 per cent profit increase for the first nine months of 2024 despite facing higher raw material costs. By the end of September, profits reached QR427.7 million ($117.3 million), up from QR353.5 million for the same period in 2023.
South32 Limited, a mining and metals company headquartered in Perth, Western Australia, reported increased production across its operations in the first quarter of the 2024–25 financial year (Q1 FY25), while maintaining its production guidance for the period. Aligned with the Australian financial year from July 1 to June 30, the company also achieved a major milestone with the successful sale of its Illawarra Metallurgical Coal business.
To know more: https://www.alcircle.com/news/south32-s-aluminium-production-and-asset-sale-highlight-a-strong-start-to-fy25-112282
Norsk Hydro, the Norwegian aluminium and renewable energy company, has published its third-quarter and nine-month results, showing solid fiscal performance driven by higher alumina and aluminium prices. Meanwhile, its downstream sectors face challenges in core markets, though there are signs of potential improvement for Hydro.
Qatar Aluminium Manufacturing Company (Qamco) reported a 21% rise in profits for the first nine months of 2024, despite higher raw material costs. By the end of September, profits had reached QR427.7 million ($117.3 million), up from QR353.5 million in the same period of 2023.
To know more: https://www.alcircle.com/news/qamco-posts-qr427-7-million-profit-in-first-nine-months-of-2024-beating-last-year-by-21-112340
In a recent meeting, Davron Vakhobov, Chairman of Uzbekistan’s Chamber of Commerce and Industry, and Atif Al Khaja, Executive Director of Bahrain’s Chamber of Commerce and Industry, discussed trade development and economic cooperation between the two countries. The talks highlighted the importance of mutual visits and collaborative events to strengthen ties between their business communities.
To know more: https://www.alcircle.com/news/uzbekistan-and-bahrain-work-out-potential-collaboration-in-aluminium-production-112308
In a significant decision by the Public Enterprises Selection Board (PESB), Tapas Kumar Pattanayak was selected for the role of Director (Human Resources) at the National Aluminium Company Limited (NALCO). The appointment follows a PESB meeting held on October 21st, 2024.
To know more: https://www.alcircle.com/news/tapas-kumar-pattanayak-named-as-the-new-hr-director-of-nalco-112319
As the European Union (EU) contemplates banning Russia as an aluminium supplier amid limited import options, small and medium-sized enterprises that account for nearly 70 per cent of turnover and 92 per cent of employment in the European aluminium sector face the risk of dissolving quickly. At the same time, prices are skyrocketing due to the widening demand-supply gap.
Evangelos Mytilineos, Chairman and CEO of METLEN Energy & Metals, has been re-elected as President of Eurometaux, Europe’s Association for the Non-Ferrous Metals Industry, during its General Assembly. His renewed leadership for a second two-year term arrives at a critical time for the European metals sector, which is facing both unprecedented challenges and significant opportunities.
To know more: https://www.alcircle.com/press-release/metlens-chairman-ceo-evangelos-mytilineos-re-elected-as-president-of-eurometaux-112327
Century Aluminum, a global metals and mining company specialising in bauxite, alumina, and aluminium, has praised the Biden Administration for finalising the guidance on the Advanced Manufacturing Production Credit (Section 45X of the Inflation Reduction Act).
The National Bureau of Statistics reports that China's aluminium production in September increased year-on-year, supported by steady demand and favorable profit margins for producers. According to the data, China, the world's largest aluminium producer, produced 3.65 million tonnes of the light metal, reflecting a 1.2% year-on-year rise.
In September 2024, global primary aluminium production saw a month-on-month decline, consistent with trends observed across all major primary metal-producing countries and regions. However, this monthly drop in September did not affect the overall upward trend observed in the third quarter of the year, as indicated by data from the International Aluminium Institute.
Hydro has decided to reduce its stake in Vianode, a synthetic graphite producer based in Norway, from 30 per cent to 19.9 per cent. On September 6, private equity fund Altor exercised a put option requiring Hydro to buy an additional 20 per cent of Vianode. However, this transaction did not proceed.
To know more: https://www.alcircle.com/news/hydro-scales-back-ownership-in-vianode-to-19-9-cancels-put-option-with-altor-112337
Aluminium Bahrain B.S.C. (Alba) has made significant progress in exploring a potential merger with the Saudi Arabian Mining Company (Maaden) by appointing a team of top-tier advisors to oversee the due diligence process. In a disclosure to the Bahrain Bourse, Alba announced the appointment of Moelis & Company UK LLP as its financial advisor, Hatch as its technical advisor, and McKinsey & Company for commercial guidance.
In a notable upward revision, Goldman Sachs, a leading global investment banking, securities, and asset and wealth management firm, has raised its 2025 price forecasts for aluminium and copper. This adjustment is attributed to heightened demand potential in China, the world's largest consumer of these metals.
Shanxi Coking Coal Energy Group Co., Ltd. has announced a significant acquisition, obtaining prospecting rights for coal and bauxite resources in the city of Lvliang. Valued at RMB 24.7 billion ($3.46 billion), this deal marks a substantial expansion of the company's resource portfolio.
In September 2024, China’s bauxite imports decreased by 25.68 per cent month-on-month due to supply disruptions from Guinea, initially caused by adverse weather conditions and currently by blocked exports from Guinea’s customs authorities. According to China’s General Administration of Customs, the country's bauxite import volume in September reached 11.5536 million tonnes, down from 15.546 million tonnes the previous month.
Montenegro has agreed to a concession contract with Novi Boksiti, a metal ore mining company based in Niksic, for the detailed geological exploration and extraction of red bauxite in the western municipality of Niksic. Montenegro's Minister of Mining, Oil and Gas, Admir Sahmanovic, finalised and signed the contract details with Novi Boksiti's executive head, Zeljko Markus, over the weekend.
The Maritime Safety Authority of Fiji (MSAF) has announced that the removal of two derelict bauxite vessels from the Naiviqiri jetty in Bua will occur soon. MSAF Chief Executive Joeli Cawaki provided this update to FBC News, highlighting that these vessels have been prioritised for removal due to safety concerns and potential environmental risks to nearby fishing grounds, which are vital for several coastal villages in Naiviqiri.
To know more: https://www.alcircle.com/news/fijis-maritime-authority-to-remove-abandoned-bauxite-vessels-from-naiviqiri-jetty-112341
On October 25, 2024, Shinagawa Refractories Co., Ltd. announced the acquisition of all the issued share capital of Gouda Refractories Group B.V., a leading Netherlands-based manufacturer of (high-) alumina refractories and provider of refractory services, from Andus Group B.V. The acquisition was finalised on October 24, 2024.
According to the Iranian Mines and Mining Industries Development and Renovation Organisation (IMIDRO), Iran's alumina powder production reached 96,685 tonnes in the first five months of the current Iranian calendar year, spanning from March 20 to August 21. Despite facing ongoing economic and geopolitical challenges, this consistent output underscores the country's commitment to maintaining a strong presence in the global alumina market.
To know more: https://www.alcircle.com/news/alumina-powder-production-in-iran-hits-96-685-tonnes-from-march-to-august-imidro-112342
Chinalco Qingdao Light Metal Co., Ltd. has been granted a patent for "A Lump Aluminum Ash Pretreatment Device," as announced by the China National Intellectual Property Administration, under the authorisation announcement number CN 221753487 U. The patent application was submitted in February 2024.
To know more: https://alcircle.com/news/chinalco-qingdao-light-metal-secures-patent-for-its-aluminium-ash-pre-treatment-device-112310
Impact Minerals has partnered with CPC Engineering and the Mineral Recovery Research Centre (MRRC) at Edith Cowan University to pilot the commercialisation of its innovative process for producing High-Purity Alumina (HPA) from the Lake Hope reserve, situated 500 kilometers east of Perth in Western Australia.
To know more: https://www.alcircle.com/news/impact-mineral-bags-usd-2-87-million-to-pilot-lake-hope-high-purity-alumina-plant-112315
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