AluNews

SMM Elaborates on Effects of Entrance Requirement for Aluminum Industry

SMM - January 31st, 2013,

SHANGHAI – The Ministry of Industry & Information Technology (MIIT) issued January 28 the Modified Entrance Requirement for Aluminum Industry 2012 (Draft for Soliciting Opinions).
SMM will elaborate on the effects of the entrance requirement on bauxite, alumina, aluminum and secondary aluminum industries. As regards aluminum industry, SMM notes this move suggests that the Chinese government has relaxed some in its control on new aluminum projects.
Prohibition of all new aluminum projects will come to an end. Instead, some requirement will be set for approval of new aluminum projects. In respect of alumina industry, the draft stipulates that alumina projects using domestic and imported bauxite must have an annual capacity of 800,000 mt or above.
The capacity required in the modified version is 33% higher compared with alumina projects using imported bauxite stipulated in the previous version. Enterprises with capacity below 800,000 mt/yr represented a combined capacity of 2.32 million mt/yr last year, accounting for 4.4% of China’s total alumina capacity. This means that once the draft is passed, 4.4% of China’s total alumina capacity will be eliminated.

Bauxite Resources Limited (ASX:BAU) Quarterly Activities

Yahoo 7 Finance - January 31st, 2013,

Perth - Bauxite Resources Limited (ASX:BAU.AX - News) continues to focus primarily on evaluating bauxite prospectivity in the Darling Range and exploration throughout the Company's extensive tenement holding. Currently BRL holds 22,500km2 in Exploration Licences in the Darling Range of south west Western Australia. The Company and its joint ventures have an overall JORC compliant bauxite resource base of 142.3 million tonnes (Mt).
Exploration and Tenement Strategy
During the quarter, the Company has continued its focus on targeted bauxite exploration and tenement rationalisation. As a result of a series of internal reviews, BRL has rationalised its tenement package in both the south west Darling Range and the Kimberley regions. The Company has applied for one exploration licence and relinquished several other exploration licences in the south west of WA, as well as relinquishing its Kimberley tenement holdings, with the aim to reduce minimum expenditure commitments and focus exploration efforts.
While maintaining efforts on bauxite opportunities BRL has investigated the geological potential for nonbauxite commodities within its substantial tenement package. A number of areas have been identified as potentially prospective for gold, coal or iron ore based on the Company's mineral targeting dataset and geophysical data obtained from the Geological Survey of WA. BRL now intends to seek interest from potential joint venture partners to undertake exploration or to divest the other mineral projects.
Extensional Drilling Program at Felicitas under Bauxite Alumina Joint Ventures (BAJV)
In November the Company announced an extensional drilling program at its Felicitas Bauxite Project, where it has a resource of 73.3Mt, which is part of the Company's joint venture with Yankuang Resources Pty Ltd (Yankuang) managed by BAJV. This program intends to extend the current JORC resource and identify the extent of the bauxite mineralisation potentially available at the Felicitas deposit. This program area covers predominantly cleared farmland of approximately 3,300 hectares.
Extension of the Felicitas resource will assist the BAJV in achieving its stated aim of defining a refinery grade bauxite deposit to underpin the prospects of development of a long term alumina refinery for the joint venture. Whilst considerable effort will still be required to achieve this objective the Company is highly encouraged with the results achieved by the BAJV team to date.
Bauxite Characterisation Studies
BAJV engaged CSIRO to carry out preliminary bauxite characterisation analysis on the northern Darling Range bauxite resources. Initial bauxite characterisation results viewed to date are encouraging and support the Company's positive view of a high quality bauxite from the northern resources and in particular the Felicitas deposit.
Bauxite Direct Shipping Ore (DSO) Opportunity
The Company also notes that portions of the Felicitas deposit are likely to meet the minimum criteria for DSO bauxite suitable for direct sales to third parties either locally or via export to a growing market in China. The extensional drilling program will form an important part of detailed technical and economic studies aimed at defining direct shipping and refinery options for the Felicitas bauxite.
BRL's 100% Owned Bauxite Exploration Programs
During the March 2013 quarter, the Company is planning to undertake a drilling program on areas of its 100% owned tenements to extend the known bauxite mineralisation in the region and establish resources for BRL not covered by a joint venture.
Improving World Market Conditions for Bauxite
Research reports received by the Company indicate a growing Chinese market for bauxite as the traditional suppliers from Indonesia and India face raw material export curtailments. China obtained almost 80% of its bauxite imports from Indonesia in 2011. With the Indonesian Government introducing unprocessed raw material export restrictions in May 2012, exports of bauxite to China in June and July ceased completely. India is facing similar issues with increased taxes on unprocessed mineral ore exports as the Indian Government pursue resource development rather than exporting ore while resolving environmental issues relating to land acquisition and development.
China and South East Asia are predicted to lead global alumina capacity growth and bauxite demand is being driven by these emerging markets. China's own bauxite supplies are dwindling with refineries increasingly using lower grade bauxite feedstock. The traditional Chinese alumina refinery areas, Shandong and Henan are increasingly reliant on imported bauxite.

Chalco predicts 2012 loss, turns to coal

Global Times - January 30th, 2013,

The Aluminum Corporation of China (Chalco) Wednesday predicted huge losses for 2012 due to the sluggish domestic aluminum market, but projected that its coal projects in China and abroad will bring profits in 2013.
In 2012, the price of aluminum dropped by some 7 percent year-on-year.
Chalco also reduced the year's production of alumina, a material used to make aluminum, to 1.7 million tons due to Indonesia's ban on bauxite product exporting, which caused alumina costs to increase by some 4 percent, Chalco said in a statement posted on the Shanghai Stock Exchange on Wednesday.
In 2013, the company said, it plans to respond to the losses by decreasing production costs in its aluminum operation and scaling up its investments in coal projects.
Chalco should shift its focus from aluminum to its coking coal operation, since coking coal is lucrative and rare in China at present, said Li.

Near-term challenges persist for Sterlite

Business Standard - January 30th, 2013,

The power segment sales are yet to see improvement after being affected by continued evacuation limitations that were imposed after Northern and Eastern region grid failure in August 2012. As a result, Sterlite Energy operated at only 31% plant load factor (PLF) during the quarter. The segment (five% of overall revenues) is likely to see gradual growth and management is optimistic of PLF increasing to 50% during March 2013 quarter.
However, the problems with Aluminium segment continue to compound. At Vedanta Aluminium, alumina production got a hit with refining getting suspended at Lanjigarh on the back of poor bauxite (raw material) availability. The company, however, continues its efforts on improving its operating efficiency. In spite of having to use imported alumina, the cost of production of aluminium has been curbed.
On Vedanta Aluminium, analysts at Emkay observe that while alternative sources for bauxite are being looked into, the company is evaluating a possible trade-off between power sales and starting of its 1.25 million tonnes per annum (MTPA) smelter at Jharsuguda. They believe this won’t happen any time soon, as sourcing of alumina and power would continue to be an overhang.
Positively, for BALCO, its coal block has got Forest-II clearances. The benefits of this will be gradual and the company is expected to mine one MTPA of coal during FY14.

China sets out guidelines for alumina projects in line with energy saving goals

Platts - January 29th, 2013,

China's Ministry of Industry and Information Technology set guidelines for new alumina projects being developed in the country, keeping in line with the government's goals of saving energy, reducing pollution and reforming industry structure as laid out in the 12th Five-Year-Plan (2011-2015).
The ministry proposes that alumina projects which plan to use domestic or imported bauxite should have an initial minimum capacity of 800,000 mt/year.
Projects that plan to use high alumina fly ash [minimum 40% alumina] are required to be located close to the alumina fly ash production zones, and have an initial minimum capacity of 500,000 mt/year.
The ministry has also stipulated that new recycled aluminum projects should have a minimum capacity of 100,000 mt/year.
Existing recycled aluminum producers who planned to expand their plants or build new plants are required have projects with a minimum capacity of 50,000 mt/year.
The project developers need to provide at least 35% of the total investment required, said the ministry.
The ministry has asked for feedback from market participants, traders and companies by February 8 on these proposals.

Bauxite mining to expand north of Nawailevu

fijivillage.com - January 29th, 2013,

Bauxite mining is expected to be expanded to the north of Nawailevu in Bua after works have been completed at the current site.
Director of Mineral Resources Malakai Finau said it is not a new site but the areas have been divided into two parts.
He said Aurum Exploration Limited is loading the 6th shipment of bauxite to China.
He said Fiji is getting 3% of the value of the bauxite for the past 5 shipments last year which is worth about $10M.

India aluminium use growth will be next only to China

Foundry-Planet.com - January 29th, 2013,

Why does Alcoa of the US, the world’s third largest Aluminium producer after United Company Rusal and Rio Tinto (takeover of Canadian Alcan gave it the volume) get so much attention in India this time of the year? Alcoa neither smelts the metal here nor has it got plans to build a smelter in India anytime in future. It, however, has a service centre here for customers using its offerings of high value products.
Our industry officials from Mr SK Roongta of Vedanta Aluminium to Mr Ansuman Das of National Aluminium Company will eagerly await Alcoa announcement of fourth quarterly results because of the global demand and supply guidance the company provides. Why only our industry officials, Alcoa, the first S&P 500 company off the block with annual results, is seen as the bellwether of the US industry in general for the white metal’s wide application in swathes of areas from aerospace to automobile to packaging.
The world Aluminium industry struggled through 2012, except for the final quarter with some good macro stories finally emerging from China and the US, and the European recession appearing to be less severe than before. It managed to negotiate volatile metal prices and global economic instability, including whether China would be able to escape a hard landing, as Aluminium consumption rose 6% last year. Alcoa chairman and CEO Mr Klaus Kleinfeld has forecast that demand for the metal will accelerate to 7% in 2013, once again principally on the back of China and to a lesser extent India. In the forecast of nine per cent Indian Aluminium demand rise to 3.8 million tonnes, Mr Roongta and Mr Das will find vindication of their earlier assessments. Aluminium use in China is to advance 11% to 23 MT.
On the grounds that Alcoa, which went about the task of weeding out its high cost smelting capacity with vengeance, posted a net profit of USD 242 million in 2012 Q4 against a loss of USD 191 a year earlier we have reasons to hope that our Aluminium industry too, will show better working in the quarter ended December. Realization of average Aluminium price of USD 2,325 per tonne in the quarter when also there was 12% trimming of costs helped Alcoa to earn profits. Das told this paper earlier that huge tonnage tied up in financing deals and also stable inventories are driving premiums on Aluminium. Making price predictions is like playing a game of roulette. Even then, according to a poll of 20 analysts by a leading agency, median price forecast is USD 2,150 per tonne for 2013, USD 2,292 for 2014 and USD 2,400 for 2015 plus premiums.
India is in the midst of creating large smelting capacity, largely through Greenfield projects heralded by Hindalco and Vedanta. In this context, Indian investment in new capacity will find justification in the Alcoa forecast that global Aluminium demand will rise from 39.5 MT including 16.5 MT in China and 23 MT in the rest of the world in 2010, to 73.4 MT in 2020 at a CAGR of 6.5% with Chinese requirements racing to 37.7 mt. In retrospect, Alcoa is found conservative in its assessment, as the CAGR run rate of eight per cent in the first three years will bear it out. So, at 2012 end, the world Aluminium demand was 46.1 MT including 20.7 MT for China where CAGR was 12%.
The part of Kleinfeld presentation on China shows the country will remain relentless in building new smelter feedstock alumina capacity as also Aluminium capacity. While China produced 36.55 MT of alumina in 2012, this year it will have an incremental local supply of 4.15 MT also to be reinforced by imports of 3.9 MT. China buying alumina in the world market is always good news for Nalco with large exportable surplus. More impressively than rapidly expanding alumina capacity, China this year will have an additional Aluminium production of 2.8 MT over 20.8 MT in 2012.
Since simultaneously there will be a high cost capacity cut of 250,000 tonnes, a continuing exercise, the country will have metal supply of 23.5 MT against likely demand of 23 MT. Chinese demand may turn out to be better than is forecast as the country is to launch several recently sanctioned infrastructure projects. The North American demand will be up four per cent to 6.2 MT while the negative demand growth in Europe will lessen from 2% to one per cent to leave a use volume of 6.5 MT.

Nhulunbuy residents plan Rio Tinto rally

The Australian - January 28th, 2013,

PEOPLE in the remote Northern Territory town of Nhulunbuy are planning a rally on Wednesday to show resources giant Rio Tinto Ltd, that "they matter".
With Rio's self-imposed deadline of January 31 for a report on the viability of their Gove alumina operations, people in the satellite town of Nhulunbuy say they are being forgotten.
Dave Suter from the Nhulunbuy Chamber of Commerce and Industry said the rally was to send a message to Rio Tinto's head office in London that people relied on the refinery staying open.
"We are bitter and twisted over here, that is for sure," Mr Suter said.
About 3500 live in Nhulunbuy, with most relying economically on the huge alumina refinery and bauxite mine run by Rio Tinto subsidiary Pacific Aluminium.
But the high Australian dollar, low alumina prices and the plant's reliance on expensive diesel fiel have meant the refinery is losing an estimated $US30 million per month.
Pacific Aluminium has hinted that the plant could stay open if the NT government found a way to ship natural gas to Gove to replace the need for diesel.
But supplying enough gas to power the huge alumina operation could leave the NT without enough gas for domestic use.
Government efforts to cut a deal with the company or delay a decision by the miner have not succeeded.
Analysts last week predicted grim news for the people of Nhulunbuy, with several saying Rio Tinto was likely to decide to mothball the Gove refinery.

AUSTRALIA ALUMINA: Holds at $338/mt but watches Queensland run cuts

Platts - January 28th, 2013,

Platts Australian alumina assessment at $338/mt FOB was unchanged from Friday despite news of production cuts in Queensland, Australia due to storms and flooding.
Reports of the run cuts came during the Asian business day, but market participants mostly said they planned to wait and see what impact they might have.
Rio Tinto Alcan confirmed Monday it has curtailed alumina production in Queensland due to severe weather from the remains of Tropical Cyclone Oswald.
The company has taken offline the 3.4 million mt/year Yarwun refinery, and reduced the operating rate of the 3.95 million mt/year Queensland Alumina Ltd refinery in Gladstone, spokesman Ian McGoldrick said.
McGoldrick said the Yarwun refinery would restart when it was safe to do so. RTA's bauxite mining operations in Weipa, Queensland, were also hit when Oswald first formed, although operations have since normalized, he said. Queensland's coal transportation network has been hit by floods, local media said. Gladstone has also been declared a disaster zone after a weekend of carnage from the storms, gusting winds and flash floods.
Gladstone port reopened early Sunday, Maritime Safety Queensland said Monday, after a two-day closure. The port was closed to all shipping from 6 am local time Friday (2000 GMT Thursday) to 6 am Sunday.
On Monday, two Chinese alumina importers said they would put off reselling Australian material.
One said the decision would depend on the duration of the production curtailments in Queensland. He said while a short period of cutbacks was not expected to put upward pressure on the market, he couldn't rule out steep price increases if the curtailments were to endure.
Last Friday, the alumina bid-ask spread was $335-340/mt FOB Australia. Global supplies have not been overly long, market participants have noted in recent weeks. Alumina shipments from various Australian ports on the continent's east and west coasts have also been a little late, sources have also said in the last two weeks.
In addition participants were awaiting Rio Tinto's decision on the future of its high-cost 2.65 million mt/year Gove refinery in Australia's Northern Territory.
Subsidiary Pacific Aluminium confirmed last Wednesday it would not be extending a review of the refinery operations beyond January 31, despite an appeal from the state government to allow more time. PA is studying whether to revamp, suspend or decrease operations at the refinery. Last Wednesday PA said a decision would be made shortly after the review.
Platts China domestic alumina assessment for Henan province was stable at Yuan 2,620/mt ($417/mt) ex-works for 70:30 cash and credit terms. A Chinese smelter reported that port stocks were available at around Yuan 2,650/mt. Sources said domestic trade has slowed as the Lunar New Year holiday from February 9-15 approaches.

Gov't, UC Rusal to ink bauxite deal by month end

Go-Jamaica - January 28th, 2013,

The Government is hoping to reach an agreement with Russian company UC Rusal by month end on the timeline for the reopening of the Alpart and Kirkvine bauxite plants.
The downturn in the global aluminium market forced the company to close the plants in 2009.
UC Rusal has cited the high cost of electricity in the country as one of the main challenges to its operations in Jamaica.
The government has been seeking to negotiate a deal with the company for the reopening of the plants and Energy Minister Phillip Pauwell said the talks are at a critical stage.
Paulwell said the discussions are advanced and the government and UC Rusal have signed off on an energy solution for the plants.
He had previously said that finding an alternative to oil was a critical hurdle which needed to be crossed for the talks with UC Rusal to progress.
The energy minister has declined to divulge which alternative energy solution has been agreed to with UC Rusal saying that he plans to make a comprehensive statement soon.

Bauxite companies bullish on production growth

StabroekNews.com - January 27th, 2013,

Bosai Minerals Group and Bauxite Company of Guyana Inc (BCGI)–a subsidiary of Russian bauxite company Rusal–have both projected increased output for this year but are guarded about what this will mean in financial terms.
This was revealed at a review of the bauxite sector held at a forum yesterday at Watooka House, in Linden. The event, hosted by the Ministry of Natural Re-sources and the Environment, saw the presence of executives of both companies, officials of the Guyana Geology and Mines Commission, and the Environmental Protection Agency, among others. Minister of Natural Re-sources and the Environment Robert Persaud gave the opening address at the two hour plus interactive session.
Present too was Chairman of the Region 10 Regional Democratic Council (RDC) Sharma Solomon, who registered his disappointment during the session with the late notice that he received of the meeting.
He said that had he known earlier, he would have been able to prepare to properly interact on the issues surrounding the bauxite industry.
According to the ministry, bauxite production improved significantly last year, moving from 1,827,555 metric tonnes in 2011 to 2,034,811 metric tonnes at the end of November 2012.

Surplus, but aluminium tipped to rise

The New Zealand Herald - January 24th, 2013,

Aluminium prices should improve slightly this year, despite an expected surplus of the metal and the likelihood of overproduction in the years ahead, Deutsche Bank said in its quarterly commodities review.
One-third to half of the world's aluminium smelters - New Zealand's Tiwai Pt included - are estimated to be operating at a loss.
Since 2008, the aluminium market has generated a cumulative surplus of nearly nine million tonnes. Deutsche Bank expects the market to be in surplus by about 1.3 million tonnes in 2013 alone.
"Nevertheless we believe that the average price will be modestly higher year-on-year, a function of stronger physical demand conditions in the Western world."
The bank expects supply growth could exceed 6 per cent in 2013, taking production over 50 million tonnes.
Prices look set to play a big part in the future of New Zealand Aluminium Smelters' Tiwai Pt smelter, near Bluff, and will feature in the Government's thinking as it prepares power generator Meridian for partial privatisation. NZAS consumes around 15 per cent of the country's power.

Bottlenecks may upset Utkal Alumina applecart

The Times Of India - January 24th, 2013,

KORAPUT - The Utkal Alumina International Limited (UAIL) may miss its March-end deadline to start production at its plant as tribals have set development of the area as a precondition to allow bauxite mining in the area. Many official criteria also need to be fulfilled.
The UAIL, a subsidiary of Kumar Mangalam Birla's Hindalco group, has set up a 4.5 million tonne bauxite mining plant at Baphlimalli hills and a 1.5 million TPA alumina refinery at Doragurah in Kashipur block of Raygada district.
According to sources, the permission the company obtained in September, 2012, to start mining at Baphlimali Hills stands cancelled and now the company needs to apply afresh to begin mining.
"As Utkal Alumina failed to start mining within three months of obtaining the permission in September,2012, that order stands cancelled. Now the company has to renew the permission. Without renewing the permission, they can't start mining," said mining officer (Koraput) S P Nanda.
According to the officer, after obtaining the permission for mining, the company has to obtain licence for transportation of bauxite from its mining plant to its refinery, which is 25 km away at Doragurah.
"The UAIL has also to obtain licence for storing bauxite and coal to run the refinery before starting production," he said. Moreover, tribals have intensified their agitation against the company accusing it of cheating them in the name of development.
"It has done nothing noticeable for which we have not allowed the company to start mining. Now if the company wants to start mining then it has to fulfill our demands first, or else no mining will be allowed," said Bhagaban Majhi, convenor of Prakrutia Sampad Surakhya Parishad (PSSP), which is spearheading the anti-mining campaign in the area.
The tribals, under the banner PSSP, had met collector (Rayagada) Sashi Bhusan Padhi recently and submitted an action plan for the development of the area as a precondition for the company to start mining. "Genuine demands of the affected people will be considered," said Padhi.
The demands include irrigation facilities in the affected villages, provision of safe drinking water, pucca roads and establishment of model schools, technical institutions and hospitals.
However, exuding optimism, a senior advisor to UAIL Surya Kanta Mishra said, "Required official formalities will be fulfilled in time and we are hopeful of starting production as expected in March-end or early April."

GCC plans record aluminium production by 2014

Trade Arabia - January 22nd, 2013,

With global demand for aluminium estimated to increase and reach 70 million metric tons per year by 2020, GCC countries are all set to boost their production capacity to 5 million metric tons by 2014, up 40 per cent from around 3 million tons in 2012, said an expert.
The GCC region has been a key aluminium producer and is set to account for 13 per cent of the world’s total aluminium production by year end, driven mainly by aggressive investments in the region’s aluminium industry, including construction of new smelters and the expansion of the pipeline network that has further reinforced the region’s position in the global market, remarked Mohammed Bader-Eddin, the show director of the upcoming 'Aluminium Middle East' expo.
A leading exhibition for aluminium products, technologies and investments in the region, Aluminium Middle East, will be held from April 23 to 25 at Dubai International Convention and Exhibition Centre (DICEC).
According to Bader-Eddin, the Gulf region has all the right components to truly become a key player in the global aluminium production business.
"GCC countries are currently working hard to achieve their future aspirations and consolidate their leading position in the region and the world by primarily increasing their annual productivity and adding new capacity, while adopting the latest advanced technologies and the highest standards in sustainability and environmental conservation," he added.
Gulf producers tend to take their aluminium production capacity even further to address the strong demand, particularly within the GCC region, leveraging its strategic advantages including its easy access to low-cost raw materials and proximity to major aluminium markets in Europe, the US and the Far East.
As estimated by the Gulf Aluminium Council, around 80 per cent of produced aluminium in the Gulf is exported to different parts of the world, reaffirming the GCC’s vital role to meet local, regional and global demand.
In 2011, a number of new aluminium smelters and manufacturing companies were established in Saudi Arabia and the UAE to drive further growth and establish the Gulf as a major player in the global aluminium industry.
On the other hand, the Gulf’s aluminium investments are seeing significant movement and could hit $55 billion by 2022, with $22 billion in the UAE, $7 billion in Saudi Arabia and Kuwait and $5.7 billion in Qatar.
The recent activities in the industry, including the establishment of new smelters and production units, and efforts by manufacturing companies to expand the pipeline network, have had a great effect in promoting aluminium production and other related industries in the region.
As part of the efforts to increase the Gulf’s global market share and create lucrative investment opportunities across the aluminium industry in the region, a select group of local, regional and international investors, experts and businessmen are set to discuss some of the prominent industry concerns, trends and investment opportunities during the expo.
Formerly known as Aluminium Dubai, the third edition of the event follows the huge success and the momentum generated during the previous first two editions, as it serves as an ideal platform to showcase promising investment opportunities and benefit from best international practices and the latest in aluminium products, technologies and investments.
"Aluminium Middle East' will provide a world-class interactive platform for key industry players to look into the latest developments and tech-savvy innovations, as well as discuss investments in new smelters and expansion plans across local and regional markets," said Bader-Eddin.

India's aluminium use growth will be next only to China's

Business Standard - January 22nd, 2013,

Why does Alcoa of the US, the world’s third largest aluminium producer after United Co Rusal and Rio Tinto (takeover of Canadian Alcan gave it the volume) get so much attention in India this time of the year? Alcoa neither smelts the metal here nor has it got plans to build a smelter in India anytime in future. It, however, has a service centre here for customers using its offerings of high value products. Our industry officials from SK Roongta of Vedanta Aluminium to Ansuman Das of National Aluminium Company ( Nalco) will eagerly await Alcoa announcement of fourth quarterly results because of the global demand and supply guidance the company provides. Why only our industry officials, Alcoa, the first S&P 500 company off the block with annual results, is seen as the bellwether of the US industry in general for the white metal’s wide application in swathes of areas from aerospace to automobile to packaging.
The world aluminium industry struggled through 2012, except for the final quarter with some good macro stories finally emerging from China and the US, and the European recession appearing to be less severe than before. It managed to negotiate volatile metal prices and global economic instability, including whether China would be able to escape a hard landing, as aluminium consumption rose six per cent last year. Alcoa chairman and chief executive officer (CEO) Klaus Kleinfeld has forecast that demand for the metal will accelerate to seven per cent in 2013, once again principally on the back of China and to a lesser extent India. In the forecast of nine per cent Indian aluminium demand rise to 3.8 million tonnes (mt), Roongta and Das will find vindication of their earlier assessments. Aluminium use in China is to advance 11 per cent to 23 mt.
On the grounds that Alcoa, which went about the task of weeding out its high cost smelting capacity with vengeance, posted a net profit of $242 million in 2012 fourth quarter against a loss of $191 a year earlier, we have reasons to hope that our aluminium industry too, will show better working in the quarter ended December. Realisation of average aluminium price of $2,325 a tonne in the quarter when also there was a 12 per cent trimming of costs helped Alcoa to earn profits. Das told this paper earlier that huge tonnage tied up in financing deals and also stable inventories are driving premiums on aluminium. Making price predictions is like playing a game of roulette. Even then, according to a poll of 20 analysts by a leading agency, median price forecast is $2,150 a tonne for 2013, $2,292 for 2014 and $2,400 for 2015 plus premiums.
India is in the midst of creating large smelting capacity, largely through greenfield projects heralded by Hindalco and Vedanta. In this context, Indian investment in new capacity will find justification in the Alcoa forecast that global aluminium demand will rise from 39.5 mt, including 16.5 mt in China and 23 mt in the rest of the world in 2010, to 73.4 mt in 2020 at a CAGR of 6.5 per cent with Chinese requirements racing to 37.7 mt. In retrospect, Alcoa is found conservative in its assessment, as the CAGR run rate of eight per cent in the first three years will bear it out. So, at 2012 end, the world aluminium demand was 46.1 mt, including 20.7 mt for China where CAGR was 12 per cent.
The part of Kleinfeld presentation on China shows the country will remain relentless in building new smelter feedstock alumina capacity as also aluminium capacity. While China produced 36.55 mt of alumina in 2012, this year it will have an incremental local supply of 4.15 mt also to be reinforced by imports of 3.9 mt. China buying alumina in the world market is always good news for Nalco with large exportable surplus. More impressively than rapidly expanding alumina capacity, China this year will have an additional aluminium production of 2.8 mt over 20.8 mt in 2012. Since simultaneously there will be a high cost capacity cut of 250,000 tonnes, a continuing exercise, the country will have metal supply of 23.5 mt against likely demand of 23 mt. Chinese demand may turn out to be better than is forecast as the country is to launch several recently sanctioned infrastructure projects. The North American demand will be up four per cent to 6.2 mt while the negative demand growth in Europe will lessen from two per cent to one per cent to leave a use volume of 6.5 mt.
Stacked against a somewhat Alcoa bullish view of prospects, Reuters has reported Hydro CEO Richard Brandtzaeg saying, “It is too soon to say whether 2013 will be better or worse than 2012.” At the same time, “as growth (economic) continues and there is less capacity (aluminium) coming on stream, I’m cautiously optimistic about medium term,” says Brandtzaeg. In difficult times, companies like Alcoa engage in slimming exercise to make the best of good times. Besides delivering $1.3 billion in productivity and overhead improvement, Alcoa achieved an all-time low working capital employment. This year too, it hopes to achieve productivity gains of $750 million. Here, then, are a few lessons for our aluminium makers.

Brazilian primary aluminium production down 0.3% in 2012: ABAL

Platts - January 21st, 2013,

Brazil's primary aluminium production reached 1.436 million mt in 2012, down 0.3% from 1.44 million mt in 2011, according to figures released by the ABAL, the Associacao Brasileira do Aluminio.
Output in December was 117,600 mt, down 5.5% from December 2011 production of 124,400 mt.
For the full year 2012, Votorantim Metais saw its production rise 11.2% to 454,900 mt from 409,000 mt in 2011, according to ABAL figures.
Other producers saw year-on-year production dip, however, with Albras down 2.5% at 446,700 mt, Alcao down 6.5% at 327,600 mt, BHP Billiton down 8.5% at 160,700 mt and Novelis down 1.3% at 46,500 mt.

Hindalco to start production at Odisha mine this month

SME Times - January 17th, 2013,

Utkal Alumina International Limited (UAIL), a wholly-owned unit of Hindalco, may start extracting bauxite from its mines in Odisha's Rayagada district by the end of this month, a senior company official said Wednesday.
"Over burden removal operation has already started in November 2012, and bauxite extraction is expected by the end of this month," the official, who did not want to be named, told IANS.
The mine at Baphilimali hills in the district of Rayagada, nearly 400 km from state capital Bhubaneswar, has a bauxite reserve of about 200 million tonnes.
Although Utkal Alumina has permission to mine 8.5 million tonnes per annum, it has aimed to mine 4.5 million tonne per annum initially, he said.

Rio Tinto says aluminium production down

The New Zealand Herald - January 16th, 2013,

Rio Tinto Alcan's aluminium production was nine per cent lower in 2012 compared with the previous year, and fourth quarter production was two per cent down, largely due to the impact of industrial action at one of its Canadian smelters, the company said.
Rio Tinto Alcan, the majority owner of the Tiwai Point aluminium smelter, said in its quarterly operations review that the ramp up of production at its Alma plant, in Quebec, was continuing after an agreement was reached with unions last July after a six-month dispute.
About 800 workers had been locked out of the plant since January 2012.
The Alma plant in Quebec's Saguenay region, about 225 km north of Quebec City, is one of Rio Tinto Alcan's most important aluminium smelters in North America, producing 438,000 tonnes annually. The lockout resulted in a one-third cut in production at the smelter.
New Zealand Aluminium Smelters Limited (NZAS), which operates the Tiwai Point aluminium smelter near Bluff, is 79.36 per cent owned by Rio Tinto Alcan and 20.64 per cent owned by Japan's Sumitomo Chemical Co.
Rio Tinto Alcan is in the process of bundling Tiwai with 12 other smelter assets for sale under the new name, Pacific Aluminium.
The parent company Rio Tinto, one of the world's biggest miners, said 2012 was a strong year across the group.
"We achieved record annual iron ore production and shipments as our expansion programme continues on schedule, delivering industry leading returns for our shareholders," Rio Tinto chief executive Tom Albanese said in the review.
Rio Tinto's copper, bauxite, alumina, thermal coal and titanium dioxide businesses all delivered substantial production increases on 2011 levels, Albanese said. The company is listed on the London and Australian stock exchanges.

Hindalco Odisha refinery start delayed to March

Reuters - January 16th, 2013,

Non-ferrous metals producer Hindalco Industries (HALC.NS) plans to start its 1.5 million tonnes per annum (mtpa) alumina refinery in Odisha by the end of March 2013, a company official said on Wednesday.
The plant, in Odisha's Rayagada district, was scheduled to start operations in January, but has been delayed due to slow progress of project work.
"We hope to commission the plant by end of March," S.K Mishra, a senior advisor at Utkal Alumina International Ltd (UAIL), a wholly-owned unit of Hindalco, told Reuters.
Hindalco's bauxite mining in the state, which was scheduled to start in October 2012, has also been delayed and may start by the end of this month, Mishra said.
The company initially aims to mine 4.3 to 4.4 mtpa of bauxite for the refinery, though it has permission to mine 8.5 million tonnes.
Hindalco, part of the Aditya Birla Group, is in the midst of trebling aluminium capacity to 1.9 million tonnes by 2013 at a cost of about $5 billion. Its U.S.-based subsidiary Novelis is the world's largest producer of rolled aluminium products.
On Wednesday, Hindalco shares closed 4.4 percent lower at 123.40 rupees in a Mumbai market that fell nearly one percent.

Nalco cold to Vedantas alumina offer

Business Standard - January 16th, 2013,

After its alumina refinery at Lanjigarh was shut due to lack of bauxite, now operations at Vedanta’s aluminium smelter in Odisha have been hit by shortage of alumina. Time and again, Vedanta Aluminium Limited (VAL) has asked National Aluminium Company Limited ( Nalco), which has surplus alumina, to sell it the commodity at a premium, but in vain.
B L Bagra, director (finance) of Nalco, confirmed VAL had offered to pay a premium over Nalco’s export price. However, he added the company’s strategy was to export alumina. Others said Nalco’s move was triggered by the company’s reluctance to encourage competition. Nalco and VAL are competitors; both manufacture and sell aluminium.
Speaking to Business Standard, a VAL official said the company was ready to offer a premium of 7-10 per cent to Nalco for alumina. “Because we are a domestic buyer, Nalco would have been saved from various logistical issues and expenses. We are ready to take alumina from its refinery, not the Vizag port,” he said. The matter will now be taken up by the Nalco board at the end of January.
Currently, capacity utilisation at Vedanta’s aluminium refinery is 5,00,000 tonnes. On condition of anonymity, a company official said, “We require one million tonnes of alumina for this capacity. Earlier, half of this was sourced from the Lanjigarh refinery, while the rest was imported. Now, we are sourcing it fully through imports from countries such as Australia, Canada and South Africa.”
Vedanta Aluminium did not respond to queries.
State-owned aluminium maker Nalco has about 9,00,000 tonnes of surplus alumina, which it exports. If Nalco agrees to sell alumina to VAL, the Vedanta Resources associate company would save on the transportation and port charges it pays for imported alumina. Nalco, too, would gain due to the premium over its export price.
Bauxite is used to manufacture alumina, which in turn, is used as a raw material to feed the smelter to manufacture aluminium. Since VAL’s Lanjigarh alumina smelter is shut, its aluminium smelter is also recording production losses.
Currently, India is an aluminium-surplus market. While about 80 per cent the aluminium is consumed locally, the rest is exported. Industry sources say the Indian aluminium market is growing 10 per cent a year and in four to five years, demand is expected to match supply.
Exporting aluminium is not a concern. An analyst tracking the sector said, “The prices are available on the London Metal Exchange ( LME) and there is enough demand for it. Only pricing is an issue. At the current aluminium prices of about $2000 a tonne, 60-70 per cent of the global capacities are making cash losses.”

China's 2013 alumina output to rise 10% on year to 46.3 mil mt: Antaike

Platts - January 14th, 2013,

China is forecast to produce 46.3 million mt of alumina in 2013, up 9.9% from realized output in 2012, an analyst at state nonferrous information division Beijing Antaike said Monday.
The country's alumina output totaled 42.14 million mt in 2012, just below the forecast of 42.53 million mt, the Antaike figures showed.
Antaike attributed the lower output mainly to concerns over bauxite supply that emerged in the second half of 2012, which resulted in some refiners cutting back production.
"The bauxite concerns have eased this year and there is more confidence that supply will not be a major issue. Output will also increase as more people start resuming capacity or turning online new capacity that was completed but put on hold last year," the analyst said.
Antaike estimates China's alumina production capacity totaled 58 million mt/year at the end of 2012, up 7 million mt/year from the end of 2011.
"We believe capacity is likely to edge up further by the end of this year as there are still some projects ongoing. It all depends on when they will be completed," the analyst said.

Gov’t, UC Rusal to hold talks today

Go-Jamaica - January 14th, 2013,

The Government and representatives of aluminum giant UC Rusal are to hold talks today, as the parties seek to sign off on an arrangement for alternative energy solutions for the reopening of the Alpart and Kirkvine bauxite plants.
UC Rusal closed Alpart and Kirkvine in 2009, amid the global downturn in demand for alumina.
However, the cost of electricity in Jamaica has been a prime feature in the consideration to reopen the plants.
Last October, the Government granted UC Rusal a one-year concession to keep the Ewarton plant open.
In the meantime, Energy Minister Phillip Paulwell said during today's discussions, the government will be insisting on a clear timeline for the reopening of Alpart and Kirkvine.
After spending some US$4 million over the past 10 years, the Government has finally ended its attempt at introducing Liquefied Natural Gas (LNG) as the solution to the country's high electricity prices.
Last week, Energy Minister Phillip Paulwell told a Gleaner Editors Forum that this is because the Government cannot find a supply of LNG at reasonable prices.

Xingfa Aluminium Holdings Ltd : Four Characteristics in the Aluminum Processing Competition

4-traders - January 11th, 2013,

In recent years, the domestic aluminum smelting squeeze the aluminum processing industry has showed a rapid development trend. From the perspective of the world, we are a big country in the aluminum industry, in particular, the architectural Profile Systems processing. The whole construction market's demand on the aluminum profile is still increasing annually, and the medium-sized aluminum production enterprise is the biggest gain in the market.
But for the entire aluminum industry, the aluminum enterprises in China, especially the small aluminum enterprise, its development will be hindered, in addition, mergers and acquisitions fail or medium-sized enterprises will be inevitable. A large number of experts pointed out: in the future, there are four characteristics in the domestic aluminum processing market competition:
First: compared with the other industries, the differences degree in the product of the aluminum industry is relatively small, and therefore, the main competition of the aluminum industry market in the future is the cost competition. For this reason, enterprise should pay more attention on the aspect of competition, and try our best to reduce by reducing the cost of the raw material, while keep the same quality of products.
Second: the trend of large-scale expansion of the profile supplier and industry vertical integration trend are clearly accelerating, and in the future, the t part of the high-quality corporate with the rapid growth will become the leading force in the market competition. There is no doubt that the small enterprises with the poor quality products will be eliminated in the near future, so it is extremely important to develop new technology to take a good place in the market.
Third: the comprehensive competitiveness of enterprises with the main feature of growing scale, aluminum processing technology, brand management, and service-based is growing day by day. A good company should develop at various aspects which can help it beat the other enterprises, and strength its own power.
Fourth: the pace that China's aluminum enterprises to enter the international market will be further accelerated, especially in some coastal areas part. Large enterprises with better foundation of international marketing aluminum exports will be expected to be rapid growth. In the modern world, the development pace of everything is fast, so we have to keep the pace with the times, and only in this way can we not be eliminated by the fast developing world. Therefore, advantage technology plays the vital factor in the process of development.
www.aluminiumsupplier.com.cn has become a famous and large-scaled enterprise specialized in production of aluminium profiles for both architecture and industry, with its yearly capacity of 150,000 tons. The Company is the production base for aluminium alloy designated by the Ministry of Construction of China, and it was awarded "No.1 of Top-Ten National Aluminium Profile Enterprises".

Rio Tinto considering suspension of Gove operations

The Australian Worker's Union - January 10th, 2013,

RIO Tinto has warned it is considering suspending operations at its loss-making alumina refinery in Arnhem Land, as the Northern Territory Government struggles to broker a deal for the supply of gas to the plant.
The mining giant is expected to decide the fate of the plant by the end of this month after launching a review of the operations in October.
Rio Tinto's Pacific Aluminium business said it was considering increasing exports of bauxite or suspending operations at the plant until economic conditions improve, after the December target set by NT Chief Minister Terry Mills for reaching a deal on gas for Gove was missed.
The delay means Rio may be forced to decide on the refinery's fate without knowing whether it has the option of converting to a cheaper energy source.

Alcoa paints brighter outlook for aluminium in 2013

live mint - January 9th, 2013,

Aluminium maker Alcoa Inc. has announced its earnings for the December quarter and also its outlook for 2013. But first, how did aluminium fare in 2012? Last year, global demand for aluminium is estimated to have risen by 6%, lower than the 10% growth it achieved in 2011 and 13% in 2010. The bright spots during 2012 were: production cuts that limited oversupply, a softening of key raw material prices, and a sharp jump in regional metal premiums earned by aluminium producers.
Alcoa’s December quarter results showed a slender improvement in sales on a sequential basis, but the profit front saw good news, with its adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) margin doubling to 10% over the preceding quarter. Alcoa also sees a brighter future for aluminium in 2013, with demand expected to grow by 7%. That may not seem like a very big increase, but is important as it marks the beginning of a recovery. This estimate assumes that European demand will continue to decline, but at a lower rate, and North America’s growth will remain flat at 4%.
Emerging markets are thus expected to shoulder a major part of the burden, with China, Brazil and India seeing significant growth in demand. Any under-performance by these countries could throw that estimate out of gear.
There had been fears that forthcoming capacity additions would undo the effect of production cuts. In aluminium, Alcoa forecasts a 9.3% increase in production from new plants, but the increase in demand will restrain the surplus to 535,000 tonnes in 2013, compared with an estimated deficit of 262,000 tonnes in 2012. In alumina, a deficit of 200,000 tonnes is being projected.
A surplus situation in primary aluminium is a risk, but Alcoa takes comfort in the fact that global inventories have not increased in 2012, and regional premiums continue to be strong. That should ensure that metal prices remain steady.
Alcoa’s results appear to indicate that Indian aluminium producers are likely to see their December quarter profitability improve on a sequential basis. Its rolled products and engineered products divisions, however, have not done well due to seasonal factors and flat trends in certain markets. That may mean that Novelis Inc., Hindalco Industries Ltd’s Canadian subsidiary which sells value-added aluminium products, experiences similar headwinds.
London Metal Exchange aluminium prices continue to be volatile, though metal premiums are clearly playing a bigger role in influencing results. On the upside, a surprise can come from a flow of positive macro-economic news, while a key downside risk is from demand falling short of estimates, especially when there supply has increased. China was one of the main reasons why growth in 2012 fell below initial estimates, as it accounts for 46.5% of global aluminium demand, and to what extent its economy recovers in 2013 will determine the fate of Alcoa’s estimates.

Future of Gove smelter up in air

The Australian - January 7th, 2013,

CANBERRA has countered calls for a drastic intervention in the domestic gas market to guarantee energy supplies to a Rio Tinto aluminium refinery amid estimates it could cost $2 billion to rescue the Northern Territory facility.
Resources Minister Martin Ferguson moved against the proposals by signalling it would be up to Rio and the Northern Territory government to strike a commercial deal to power the refinery.
Rio announced last October it was reviewing the Gove smelter and reiterated yesterday that it would decide by the end of this month on whether to suspend the operation, which employs 1400 workers and adds about $400m a year to the Territory economy.
NT Chief Minister Terry Mills is to receive a report within days on how to ensure energy supplies to the smelter, which uses heavy fuel oil but would be more efficient if it could tap into the Territory's rapidly growing gas fields. The NT cannot meet all Rio's requirement because the territory's contract with ENI provides only 700 petajoules of gas over 25 years. The smelter needs 300 petajoules over the next 10 years and the same in the subsequent decade.
Mr Ferguson's office said the federal government was working with the NT government and the Rio subsidiary, Pacific Aluminium, to explore options for the Nhulunbuy indigenous community, which is heavily dependent on the smelter.
"Consideration is being given to what the government might do to facilitate the continuation of alumina refining at Gove should Pacific Aluminium be able to source sufficient quantities of gas, at a price that would enable the refinery to be in production over the medium term," a spokeswoman said.
Once NT negotiations with the gas suppliers reached a conclusion, the federal government would give "careful consideration" to options that might help the infrastructure construction, she said.
The NT government is appealing to Canberra to underwrite the risk associated with giving up some of its contracted gas supply to help save the smelter.
"We really just need the commonwealth to say the funding problem we would fall into is going to be something they would support us through," a source said.
NT Acting Chief Minister Robyn Lambley said it would be "unthinkable" for the Territory not to examine every avenue to keep the Gove refinery going.
"Any deal needs to have the support of the commonwealth, not just for the construction of a pipeline but also to ensure the Territory is not exposed to significant risk," Ms Lambley said.
Federal sources confirmed there was no willingness to intervene on the gas supply issue.
The refinery and bauxite mine at Gove is believed to be losing about $240 million a year, in large part because of the high cost of heavy diesel power generation.

Anglo Aluminum gets title extension for Koba Koumbia and renewal for Mamou-Dalaba Bauxite interests in Guinea, West Africa

equities.com - January 7th, 2013,

Anglo Aluminum Corp. is pleased to report that the Minister of Mines and Geology of the Republic of Guinea, West Africa, has granted, on December 26th, 2012, under Decree No. 2431/MMG/CAB/CPDM/2012, a one year extension to the Koba Koumbia permit held by Anglo's 51% owned subsidiary Amig Navasota Mining International SARL.
The permit, comprising two licences covering 536 square kilometres, is now in good standing until December 26, 2013.
In addition, on December 24, 2012, the Minister of Mines and Geology of the Republic of Guinea also granted Anglo's wholly-owned subsidiary, Societe Guineenne de Fer et de Bauxite ('SGFB'), the first renewal for its Mamou-Dalaba permit, under Decree No. A 2012/10599/MMG/SGG, valid for a period of 2 years.
'Given that the Mines Minister recently commented that more than 75 % of mining permits granted by Guinea before 2011 are inactive and should be cancelled, we believe that the extension of Anglo's permits is confirmation that we are recognized by the government as being good corporate citizens doing valid exploration and development work in Guinea.' stated Jim Gillis, CEO of Anglo.
Now that the Koba, Koumbia and Mamou-Dalaba permits have been extended and renewed, it is Anglo's intention to proceed with a previously announced business reorganization by transferring all of the issued and outstanding shares of its wholly-owned subsidiary, Societe Guineenne de Fer et de Bauxite, a company incorporated under the laws of the Republic of Guinea that holds the Mamou-Dalaba bauxite exploration permits, to Anglo's wholly- owned subsidiary, Africa Bauxite Corp., concurrent with an application for the shares of Africa Bauxite Corp. to be listed on the TSX Venture Exchange.
Should the reorganization complete as planned, Anglo shareholders will become shareholders of Africa Bauxite Corp. The proposed reorganization is intended to maximize shareholder value and liquidity, as well as create operating efficiencies.

ORBITE ALUMINAE INC. NAMED AS NATIONAL WINNER OF THE 2012 REGIONAL AWARDS FOR NEW TECHNOLOGY

MELODIKA.NET - January 6th, 2013,

Canadian Manufacturers & Exporters (CME) in collaboration with the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP), recognize Orbite Aluminae Inc., based in Montréal, Québec, as national winner of the 2012 Regional Awards for New Technology. Orbite Aluminae Inc. is a Canadian cleantech company whose innovative technologies are setting the new standard for alumina production. Orbite technologies enable environmentally-neutral extraction of smelter-grade alumina (SGA), high-purity alumina (HPA) and high-value elements, including rare earths and rare metals, from a variety of sources such as aluminous clay and bauxite, without generating toxic red mud residue.
Orbite's operations have a negligible environmental impact compared to the conventional process of extracting alumina from bauxite. The Orbite process of producing metallurgical-grade alumina involves crushing and then acid leaching the aluminous claystone found at the company's Grande-Vallée property. Orbite's unique technology consumes less energy and generates less pollution then and no caustic by-products.
The company owns 14 different families of intellectual property rights filed across the world for the extraction of alumina at the highest standards of sustainability (www.orbitealuminae.com).
"Orbite Aluminea's award underlines the role of innovation and technologies in the sustainable development of our economy, a major issue for our members. This award recognizes the leadership of Orbite Aluminea and shows that environmental concerns and competitiveness can go hand in hand," said Simon Prévost, president of CME Québec. Orbite Aluminae Inc. was also named the regional winner for this awards category.
The NRC IRAP Regional Award for New Technology recognizes innovative excellence in the development, adoption, and application of new technology in process or products. These awards provide SMEs with an opportunity to demonstrate their unique and innovative excellence in the development and application of new technologies.

Alba achieves production record

AMEinfo.com - January 6th, 2013,

Aluminium Bahrain B.S.C. (Alba) was able to achieve another landmark by setting the record in production in 2012. Alba's 2012 production of 890,217 metric tonnes per annum (mtpa) was a jump of 8,907 metric tonnes from the 881,310 mtpa produced in 2011.
A ceremony to mark this accomplishment was held at the HRH Princess Sabeeka Oasis on Thursday, January 3, 2013.
It was attended by Alba's Chief Executive, Tim Murray, Chief Operations Officer, Isa Al Ansari, Acting Chief Finance & Supply Chain Officer, Ali Al-Baqali, Chief Support Functions Officer, Basem Al-Sharqi, Chairman of Alba's Labour Union, Ali Al-Binali as well as other senior officials.
Commenting on this milestone, the company's Chief Operations Officer, Isa Al-Ansari, said, "Alba's achievement was made possible by its dedicated workforce and great teamwork. We are proud to once again have achieved the record in production and look forward to even more in 2013."
The Chief Executive Officer, Tim Murray, added, "2012 was a challenging year for the aluminium industry however Alba's commitment to operational improvement resulted in achieving the record in metal production without incurring any significant additional capital expenditures."
Alba's high-grade aluminium product range includes standard and T-ingots, extrusion billets, rolling slab, properzi ingots and molten aluminium. They are produced to high purity standards that exceed 99.9%.

Development of New Aluminium Smelters and Downstream Industries to Drive the Aluminium Scrap and Recycling Market in the GCC

Business Wire India - January 2nd, 2013,

Globally, Middle East and North Africa (MENA) has been a major exporter of its primary Aluminium production. The Aluminium industry, specifically in the Gulf Cooperation Council (GCC) is one of the key sectors driving the economy and contributes significantly to the primary aluminium growth in MENA.
One of the key trends identified over time, has been the development of new aluminium smelters and expansion of existing smelters coupled with parallel development of downstream industries in the region. This has led to an increase in the scope of using more of Aluminium scrap in re-melting activities for downstream players by procuring the right alloy grade, recycling and thereby saving cost. According to Frost & Sullivan, the Aluminium Scrap and Recycling Market in the GCC was estimated at 292,281 Metric Tonnes in 2010 and is expected to reach 593,434 Metric Tonnes in 2017 at a Compound Annual Growth Rate (CAGR) of 10.6 per cent between 2010 and 2017.
Considering, the region is a global player in aluminium production and a valuable source of export revenue apart from serving the booming domestic market, the GCC has planned development of new aluminium smelters in KSA and expansion of existing smelters into Phase 2 commissioning in Qatar, the UAE, Oman and Bahrain.
“The GCC is one of the fastest growing aluminium markets in the world. With the development of new smelters and expansions, more secondary re-melting opportunities will arise. Downstream players are moving towards the scrap recycling market in order to reduce significant energy costs and be efficient operationally to cut input costs and reduce the carbon footprint

OMC to file fresh ML application for Karlapat mines

Business Standard - January 1st, 2013,

State controlled miner Odisha Mining Corporation (OMC) will submit a fresh application for mining lease (ML) of Karlapat bauxite deposits after completing due verification of forest and non-forest land and quantum of bauxite reserve within the lease area.
"We are going to submit a revised ML application to the Centre for Karlapat bauxite mines. Before that, we will take up verification to ascertain the quantum of deposits available beyond the sanctuary area and the amount of forest and non-forest land. The verification process will take three months”, OMC's chairman and managing director Saswat Mishra told the media after a high-level meeting chaired by state chief secretary B K Patnaik.
Asked if OMC would supply bauxite to Vedanta Aluminium Ltd (VAL) from the Karlapat deposits, he said, “It will take 3-4 years to start mining from the Karlapat mines. Depending on the prevailing market rates at that time, we will take a call on whom to supply bauxite. Our ML application for Karlapat is not specifically for Vedanta.”
The Karlapat bauxite mine in Kalahandi district possesses 200 million tonnes of bauxite. The northern side of the mine falls under a wildlife sanctuary.
Though Odisha with around 1800 million tonnes of bauxite has nearly 55 per cent of the country's deposits, it was unable to provide bauxite to VAL whose refinery was under temporary shutdown since December 5 2012 due to want of raw material.
OMC had entered into a MoU (memorandum of understanding) with VAL for operation of Niyamgiri mines in Kalahandi district jointly, but the plan fell through following persistent protests by tribal community and green activists, which led to cancellation of forest clearance for the mine by Union ministry of environment and forest (MoEF) in August 2010.
After the Niyamgiri fiasco, VAL had sought bauxite supplies from alternative mines and made several applications to the state government in this regard.
In a bid to help revive operations of the Lanjigarh refinery, the steel & mines department earlier this month started the process of identifying prospected bauxite deposits where mining operations can commence with the statutory clearances.
The department had urged the mines directorate to furnish the status of Niyamgiri, Karlapat and other prospected bauxite deposits which are available for taking up mining directly by the state government or through OMC.