The Australian Aluminium Council (AAC) has released a new report outlining the growing risks to the bauxite, alumina and aluminium sectors, putting out a renewed call to add these materials to the Critical Minerals list.
The report Vulnerabilities & Opportunities in Australia’s Upstream Aluminium Sectors highlights the increasing risks to Australia’s domestic upstream supply chain due to increased geopolitical risk combined with rising costs and prolonged regulatory approvals.
The AAC said that adding these materials to the Critical Minerals list would not only support Australian industry and job creation but also send a clear signal to international trading partners that Australia is committed to safeguarding its vital role in the global supply of bauxite, alumina and aluminium required for transition to a low-carbon world.
AAC CEO, Marghanita Johnson, said 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.
“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,” Ms Johnson said.
Ms Johnson emphasised the need for immediate action to protect the aluminium industry to avoid the same fate as other critical minerals.
“We do not want aluminium to become the new nickel which until early this year was also considered a Strategic Mineral. The government’s decision to move it to the Critical Minerals list in February was too little too late.
“The industry has been vocal in urging the Federal Government to recognise the growing threats to our bauxite and alumina sectors. In the past 18 months, three alumina refineries have been impaired and one has been curtailed – we need the government to act.”
The report highlighted the need for a streamlined regulatory process to unlock the potential of Australia’s bauxite resources. While Indonesian refineries are set to expand alumina capacity by 6Mt over the next five years, Australia faces mounting challenges, including rising capital, labour, and energy costs, compounded by lengthy regulatory approvals.
“One of the greatest cost increases expected over the next five years will come from delays in environmental approvals, limiting access to bauxite for our alumina refineries. Indonesia can approve and build an integrated bauxite mine and alumina refinery faster than Australia can approve a bauxite mine.”
To address these issues, the AAC is urging the Federal Government to:
- Immediately include bauxite, alumina, and aluminium on Australia’s Critical Minerals list, recognising the vulnerability of the integrated sector and its importance to both domestic and global supply chains
- Streamline environmental approvals for bauxite mines and alumina refineries, balancing environmental protection with commercial realities and economic benefits
- Support the aluminium sector’s pivotal role in the global green economy, as Australia’s alumina and aluminium play a key role in the transition to a sustainable, low-carbon future
The full report is available here.
