Energy’s Influence On The Bauxite Industry

The relationship between bauxite and energy has two distinct aspects. On the one hand, since virtually all of the bauxite that is mined winds up as aluminum metal, the economic health and future of the bauxite industry and of the bauxite-producing countries depend on the continuing vigour and competitiveness of aluminum against alternative metals and materials. The price of aluminum is, in turn, particularly dependent on the price of energy. Hence, the need for bauxite is ultimately affected by the price of energy. The second aspect relates to location of the bauxite industry. There is no shortage of bauxite resources in the world. For various reasons, as we shall see, there is a growing tendency toward the integration of bauxite mining, bauxite refining and aluminum smelting in those countries that have the resources both of bauxite and of energy necessary to support the entire production chain. Thus, the availability of attractive energy supplies will increasingly favour development of bauxite mining: the traditional export of bauxite as a simple raw material is likely to diminish in relative terms. In short, both the amount of bauxite mined and where this mining will take place are related to energy considerations. Let us first have a brief look at the four basic activities that are involved in our integrated operations: A. The bauxite is mined and moved to an ore plant. This step does not require more than relatively modest amounts of energy normally associated with excavation, loading and shipping of any bulk material. We need about four or five tonnes of bauxite for every tonne of metal produced.