Industry Analysis & Industry Trends
Australia is the world's largest producer of bauxite, accounting for about one-third of global output. Bauxite production in Australia is estimated to reach 85.0 million tonnes in 2013-14, compared with 65.1 million tonnes in 2008-09. Over this period, expansion projects at bauxite mines have increased mine output. Most bauxite mined in Australia is locally processed into alumina. However, approximately $475.7 million worth of raw bauxite is expected to be exported in 2013-14. Bauxite imports are negligible.
There are just three companies in the industry, operating a total of five mines. These three firms - Rio Tinto, Alcoa and BHP Billiton - also use a high proportion of bauxite for their own alumina refining operations... purchase to read more
Industry Report - Industry Investment Chapter
The Bauxite Mining industry has a high level of capital intensity. The industry pays $0.92 in wages for every dollar spent on capital. Rising labour costs have resulted in industry operators investing in labour-reducing capital equipment. There are also significant economies of scale in the industry that have allowed mining volumes to increase substantially without a proportionate increase in labour.
A high proportion of industry capital is tied up in heavy earth-moving equipment, such as excavators, trucks and conveyors that are used to transport the ore to alumina refineries. Larger machines and conveyors have similar labour requirements as smaller variants so industry expansion has increased the usage of capital rather than labour... purchase to read more