Industry Analysis & Industry Trends
Australia is a substantial producer of alumina, accounting for over 20% of world production. The major players in the Alumina Production industry are vertically integrated, with Alcoa, Rio Tinto and South32 all having interests in the upstream Bauxite Mining and downstream Aluminium Smelting industries. The Alumina Production industry is also highly concentrated, with the financial performance of the major players having a large influence upon overall industry revenue.
Local aluminium smelters have been subjected to challenging market conditions over the past five years. This has pressured industry firms as domestic demand has fallen. The Alumina Production industry derives the majority of its revenue from exports, which exposes the industry to volatile global market conditions... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a high level of capital intensity. For every dollar of labour expenditure, $0.43 is spent on capital. Alumina production requires large-scale, complex production facilities. Most of the equipment used in the Bayer process, where bauxite ore is refined into alumina, is highly specialised and this is reflected in the capital-intensive nature of the industry. The transportation of bauxite ore to the alumina refineries also represents a significant capital cost, which includes the use of conveyors, trucks and excavators. Skilled staff are required to control and monitor alumina processing equipment, and employees are compensated with high wages... purchase to read more