IC 8861 Alumina Availability - Domestic - A Minerals Availability System Appraisal

In order to determine the potential availability of alumina to feed U.S. aluminum smellers, the Bureau of Mines evaluated 39 domestic mines and deposits of bauxite, alunite, and high-alumina clays and found that substantial increases in alumina prices would be necessary before nonbauxitic deposits could become competitive with bauxite. As part of the study, a price-tonnage relationship was developed indicating the quantity of alumina that could be produced from known deposits at various alumina prices and at a 15-pct discounted cash flow rate of return on the required capital investment. All capital and operating costs were calculated in August 1980 dollars. The domestic bauxite reserve base comprises three operating bauxite mines in Arkansas containing some 15.6 million metric tons of recoverable alumina (A1203). Ferruginous bauxites, clays, and alunites fall into the subeconomic category of identified aluminum resources, which, at the demonstrated level, contain over 4,000 million metric tons of alumina that are estimated to be recoverable. Analyses indicate that, at the demonstrated resource level, a total of some 15.6 million metric tons of alumina, all from three active Arkansas bauxite mines, is recoverable at a 1980 price of $0.12 per pound ($264 per metric ton) of alumina. A price of approximately $0.26 per pound ($573 per metric ton) of alumina would be required for production of the total U.S. resource. Thus, unless new technological breakthroughs occur that could make alternate sources of alumina competitive with bauxite, U.S. dependence upon imported bauxite will continue to increase.