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 - Starting a New Business Chapter
The industry is characterised by high barriers to entry. Substantial start-up costs, high capital intensity and the scarce geographical dispersion of bauxite ore make it difficult for new players to enter the market.
Existing participants are all large, well-established mining and processing companies, with interests in the upstream Bauxite Mining and downstream Aluminium Smelting industries. Due to the limited regions of Australia where bauxite ore is available, most major players already have access to these deposits. For example, Rio Tinto own the Weipa bauxite mine in Queensland. This makes it very difficult for prospective participants to enter the industry, as they would need to purchase their bauxite from upstream industries... purchase to read more