Bauxite mining in Australia, China, India and Kazakhstan is expanding rapidly due to an eager end-use market and gigantic reserves, but regulations may prove a hindrance to ambitious miners, according to natural resources expert GBI Research.
The new report* shows that while Asia-Pacific is estimated to hold the second-largest reserves of bauxite in the world, with Australia and China ranking as the top bauxite-producing countries globally, practicalities may get in the way of future profits.
Asia-Pacific accounted for around 64% of global bauxite production in 2011, and levels are expected to shoot up further as a result of the growing regional demand for aluminum. Asia-Pacific consumed an estimated 160 MMt of bauxite in 2011, as the construction, automobile, electrical appliances and packaging industries in the rapidly developing economies of China, India and Australia began to source more bauxite with which to expand their businesses.
China’s 12th Five-Year Plan will also see more bauxite imported into the country to support the State Grid Corporation of China’s (SGCC) plans to build a network of aluminum ultra-high voltage (UHV) electricity transmission lines to enhance transmission capacity in remote areas.
However, regulatory issues imposed on the mining industries of many Asian countries may damage bauxite production levels in the region. Australia’s national parliament announced plans in November 2011 to impose a US$23.6m-per-ton tax on carbon emissions for the biggest industrial polluters from mid-2012, while the Kazakhstani government’s Mineral Extraction Tax (MET) and Excess Profit Tax (EPT) has been an important fund-raiser for the government, but an object of criticism from the mining companies.
Asia-Pacific produced an estimated 136 million metric tons (MMt) of bauxite in 2011, against a consumption of 160MMt. Production is expected to increase during 2012-2020 at a Compound Annual Growth Rate (CAGR) of 6.7%, to reach approximately 249 MMt. Similarly, consumption is expected to grow at a CAGR of 6.3% to reach 276 MMt in 2020.
NOTES TO EDITORS
*Bauxite Mining Market in Asia-Pacific to 2020 - Increased Regional Demand for Aluminum to Boost Bauxite Production
This report provides key information and analysis for the Asia-Pacific bauxite mining industry, which consists of the national markets of Australia, China, India and Kazakhstan. The report covers the industry’s drivers and restraints, production, reserves and consumption, and provides details of the country’s trade statistics (imports and exports).
This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GBI Research’s team of industry experts.
ABOUT GBI RESEARCH
GBI Research is a market-leading provider of business intelligence reports,offering actionable data and forecasts based on the insights of key industry leaders to ensure you stayup-to-date with the latest emerging trends in your markets.
For further details, please Contact Us.