The Australian Aluminium Council has once again urged the government to include bauxite, alumina, and aluminium on Australia’s Critical Minerals list, citing growing risks to the sector highlighted in a new report.
The report, titled Vulnerabilities & Opportunities in Australia’s Upstream Aluminium Sectors, underscores the increasing threats to Australia’s domestic upstream supply chain due to heightened geopolitical risks, rising costs, and prolonged regulatory approvals.
Australian Aluminium Council CEO Marghanita Johnson emphasised the need for immediate action to protect the aluminium industry.
“We do not want aluminium to become the new nickel,” Johnson stated, referring to the recent collapse of nickel prices and its impact on the industry.
She pointed out that the current inclusion of aluminium on Australia’s Strategic Mineral List, while acknowledging its importance in the transition to net zero, does not provide the necessary policy support.
The report highlights several challenges facing the Australian aluminium industry:
- Increasing geopolitical risks
- Rising capital, labour, and energy costs
- Lengthy regulatory approvals
Johnson noted that in the past 18 months, three alumina refineries have been impaired and one has been curtailed, underscoring the urgent need for government action.
To address these issues, the Australian Aluminium Council urges the government to:
- Immediately include bauxite, alumina, and aluminium on Australia’s Critical Minerals list
- Streamline environmental approvals for bauxite mines and alumina refineries
- Support the aluminium sector’s role in the global green economy
Australia is a significant player in the global aluminium industry, being the world’s largest producer of bauxite and the largest exporter of alumina outside of China.
The industry directly employs over 20,000 people and indirectly supports an additional 55,000 families, primarily in regional Australia.
The Australian Aluminium Council’s renewed call for critical mineral status comes at a crucial time for the industry.
As the global demand for materials required for the transition to a low-carbon world increases, safeguarding Australia’s vital role in the supply chain becomes increasingly important.
The government’s response to this call could have significant implications for the future of Australia’s aluminium industry and its contribution to the nation’s economy.
