Alcoa in maiden bauxite shipment

Alcoa has loaded its first shipment of WA bauxite destined for a Chinese alumina refinery, describing the event at Kwinana today as a milestone moment.

The 47,000 tonne parcel of bauxite, from the Alcoa of Australia joint venture’s Darling Range mines, is the start of an export trial approved by the WA Government.

Alcoa wants to test the viability of exporting some of its massive bauxite reserves, which traditionally have been used exclusively to feed its alumina refineries at Kwinana, Wagerup and Pinjarra.

With more bauxite than it needs for its refineries, Alcoa wants to cash in on third-party bauxite demand, predominantly in China, that is thought to be worth up to 70 million tonnes a year.

Alcoa Mining president Garret Dixon, said today’s milestone shipment supported the company’s growth strategy and would complement its mining activities.

“Alcoa operates the world’s largest integrated bauxite and refining system here in WA,” Mr Dixon said.

“Over 53 years we have established sustainable mining practices to feed our three alumina refineries at Kwinana, Pinjarra and Wagerup. Bauxite exports provide the opportunity to strengthen our business by creating an additional revenue stream. They will help optimise the value of our Darling Range mineral lease for the company and the State without impacting the life of our WA refineries.”

In April the US-based aluminium giant, which owns 60 per cent of Alcoa of Australia, announced that it had signed multiple supply contracts worth more than $US350 million over two years to supply bauxite from its mines in Guinea and Brazil to third-party customers.

Alcoa is the world’s biggest bauxite miner, producing 45.3 million tonnes last year. The Alcoa of Australia mines in the South West, at Huntly and Willowdale, have a capacity to contribute 35mtpa.

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