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 82.0 million tonnes in 2014-15, up from 67.8 million tonnes in 2009-10. Over this period, expansion projects at bauxite mines have increased mine output. Most bauxite mined in Australia is locally processed into alumina, with over one-third of industry revenue projected to be derived from exports in 2014-15. Bauxite imports are negligible.
There are just four companies in the industry, operating a total of six mines. Of these, three are major companies and one is small. 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 capital intensity level. To calculate the capital intensity ratio, 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 2014-15, depreciation is estimated to account for 13.0% of industry revenue, with wages as 11.1%. This shows that for each dollar invested in capital plant, equipment and vehicles, approximately $0.85 will be required for labour inputs during the year.
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... purchase to read more