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Bauxite production set to rise: GlobalData

Global bauxite production is tipped to rise 3.8% in 2021 to reach 372.8 million tonnes, according to GlobalData.

Staff reporter
 Metro Mining’s Bauxite Hills operations in Australia

Metro Mining’s Bauxite Hills operations in Australia

The research firm put the rise down to increased output from Australia and Guinea, of at least 4.1% and 3.6% respectively, as well as production from mines elsewhere returning to pre-COVID levels.

The news comes as the iron ore price has softened from a May record of about US$230 per tonne to less than $150/t for 62% Australian fines according to MySteel, on likely stern cuts to China's steel output.

Associate project manager Vinneth Bajaj said over GlobalData's forecast period, global bauxite production was expected to grow at a compound annual growth rate of 2.2% to reach 406.7Mt by 2025.

"Australia (+1.6%) and Guinea (+6.5%) will maintain a steady supply growth, supported by a series of upcoming projects," he said.

"Together, they account for eight of the 17 planned bauxite projects, tracked by GlobalData, which have the potential to commence production by 2025."

He said Australia's production growth would be supported by the restart after the wet season of Metro Mining's Bauxite Hills mine, which was expected to produce 4Mt this year before a possible expansion to 6Mt.

Bajaj cited several developments in Guinea which were set to "play a crucial role in establishing Guinea as an export nation".

The 3Mt Garifiri project began operations this year and the relatively new Boffa mine was expected to reach full capacity in the second half and produce up to 9Mt of bauxite in 2021.

China Railway Construction Corporation completed a railway in July linking Boffa to Boke which would double freight volume, with further development phases to include exploiting bauxite resources in the new mining areas of Santou II and Houda and developing an alumina refinery in the Boke special economic zone, Bajaj said.

Guinea is also home to the giant Simandou deposit, where Winning Consortium Simandou is developing blocks one and two.

Elsewhere, Brazil-based miner Vale has renewed its longer-term aim to reach 400Mt per annum capacity as it overcomes COVID-19 impacts and restrictions following fatal tailings dam collapses in 2015 and 2019.

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Source: GlobalData

 

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