Industry Analysis & Industry Trends
Australia is a substantial alumina producer, accounting for about one-quarter of total world production each year. Alumina production is expected to total 20.9 million tonnes in 2013-14, compared with 19.6 million tonnes in 2008-09. Alumina output is expected to decline in 2013-14 as Rio Tinto's Gove refinery reduces output and domestic demand from aluminium smelters falls. Alumina output surged in 2012-13 as the full-year effect of large expansions at the Worsley, WA and Yarwun, QLD refineries drove volume growth.
Although some alumina is smelted into aluminium locally, the great bulk of output is exported. These exports, amounting to an expected 15.4 million tonnes in 2013-14, are expected to generate revenue of $5.2 billion for the year... purchase to read more
Industry Report - Industry Investment Chapter
The industry is highly capital intensive due to high capital investment levels and moderate labour costs. Alumina production requires large scale, complex production facilities with extensive processing and refining equipment. A new alumina refinery is a multi-billion dollar investment, with large refinery expansions costing a similar amount. Staff are highly paid and are required to control and monitor alumina processing equipment.
To calculate the capital intensity level for the industry, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital, while wages are used as a proxy for labour. In 2013-14, depreciation and wages are estimated to account for 7.6% and 16.9% of industry revenue, respectively... purchase to read more