Industry association the Australian Aluminium Council has recommenced its efforts to have bauxite, alumina and aluminium added to the nation’s list of critical minerals, releasing a new report on supply chain risks and urging the government not to let aluminium “become the new nickel”.
In a statement on Thursday, the council said that expanding the Critical Minerals List would be a positive for jobs and economic growth as well as sending “a clear signal to international trading partners” that Australia would protect its role as a supplier of materials “required for transition to a low-carbon world.”
Critical minerals are described as “metallic or non-metallic materials that are essential to our modern technologies, economies and national security,” and have vulnerable supply chains.
Australia’s Critical Mineral List and Strategic Mineral List were last updated in December, with aluminium gaining a place on the latter. Strategic Materials are considered having “supply chains … not currently vulnerable enough to meet the criteria”.
“The current inclusion of aluminium on Australia’s Strategic Mineral List acknowledges the metal’s importance in the transition to net zero but does not come with much needed policy support” said CEO Marghanita Johnson.
“Instead, it is a ‘watchlist’ of minerals that would meet the criteria for being a Critical Mineral but are not currently considered vulnerable to disruption.”
Johnson added that “We do not want aluminium to become the new nickel” which was considered a Strategic Mineral until February, with the government’s decision to add it to the “Critical Minerals list… too little too late.”
The price of nickel collapsed earlier this year as Indonesian supply flooded the market. Among the results have been BHP’s decision to put its Nickel West division in care and maintenance, with all but 30 of 380 employees at its Kalgoorlie Nickel Smelter stood down.
“The industry has been vocal in urging the Australian Government to recognise the growing threats to our bauxite and alumina sectors,” said Johnson.
“In the past 18 months, three alumina refineries have been impaired and one has been curtailed – we need the government to act.”
The new report, Vulnerabilities & Opportunities in Australia’s Upstream Aluminium Sectors, urges a streamlined environmental approvals for bauxite mines and alumina refineries, as well as recognition for “the aluminium sector’s pivotal role in the global green economy”.
The Australian Aluminium Council made a statement in early 2023 requesting that bauxite, alumina and aluminium be named as critical minerals.
At the time it pointed out that Australia leads the world in bauxite production, leads every nation besides China for alumina manufacture, and produces significant volumes of aluminium.
Picture: alumina being loaded (supplied)
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