Bauxite is a heterogeneous, naturally-occurring material from which alumina (Al2O3) and aluminium are produced. Aluminium is widely used in:
- building and construction
- transport
- heating and ventilation
- packaging
- electrical and communications infrastructure.
Australian Industry Structure
Australia is a dominant player in the international bauxite/alumina market and a major player in the global aluminium trade.
Australia’s aluminium industry is a highly-integrated sector of mining, refining, smelting and semi-fabrication centres, and is of major economic importance nationally and globally. The industry consists of:
- five bauxite mines
- seven alumina refineries
- six primary aluminium smelters
- 12 extrusion mills
- two rolled-product mills producing sheet, plate and foil.
The industry is highly vertically integrated and characterised by large firms with international operations. Considerable industry consolidation has taken place over recent years. All of the six leading global aluminium companies (RUSAL, Alcoa, Rio Tinto Alcan, BHP Billiton, CHALCO) have aluminium interests in Australia.
International Engagement
Electricity is a major input to the aluminium production process, accounting for between 25-30 per cent of total operating costs. The industry is highly sensitive to electricity prices and has a significant interest in the development of Australian policy on greenhouse abatement measures. The aluminium industry is also one of the sectors represented amongst the eight task forces of the Asia-Pacific Partnership on Clean Development and Climate (APP). Information relating to the APP can be obtained from the Asia-Pacific Partnership on Clean Development and Climate website.