Bauxite Market Size, Share & Industry Analysis, By Type (Metallurgical Grade, Refractory Grade), By Application (Alumina Production, Refractory, Cement , Others) And Regional Forecast, 2024-2032

Bauxite is primarily used as a raw material for alumina production, which is further used as a feedstock for producing aluminium. According to the Aluminum Association, more than 160 million metric tons of bauxite are mined each year. The leaders in bauxite production include Australia, China, Brazil, India, and Guinea. Bauxite reserves are estimated to be 55 to 75 billion metric tons, primarily spread across Africa, Oceania, South America & the Caribbean, and Asia, The U.S. has small amounts of bauxite ore located in Arkansas, Alabama, and Georgia.

Australia is the largest producer of bauxite in the world with five active bauxite mines. Most of the bauxite mined is converted to alumina to produce aluminium metal. The primary steps involved in mining bauxite include drilling, blasting, overburden stripping & removal, mining excavation & truck loading, and transportation to the beneficiation facility.

Based on the product, the market is segmented into metallurgical grade and refractory grade. The metallurgical grade segment dominated the global market. This can be attributed to the large-scale production of primary aluminium across the Asia Pacific. Thus, there is a rising demand for the product from the Asia Pacific, which is likely to boost the growth of the metallurgical grade bauxite in the long term.

Based on the application, the market is segmented into alumina production, refractory, cement, and others. Alumina production segment dominated the global market in 2019. Bauxite is a primary source for alumina production owing to its high alumina content, which is further processed to manufacture finished products. Increasing demand for finished products from the end-use industries, such as automotive and construction, is likely to fuel segment growth.

Stringent government regulation on carbon dioxide emission has forced automobile manufacturers to produce fuel-efficient lightweight vehicles. Superior properties of aluminium such as corrosion resistance, high strength, high density, high ductility, and lightweight have led to its increased adoption in automotive industries to manufacture lightweight vehicle parts. Thus, an increase in the usage of aluminium drives the growth of the bauxite market. However, the high cost of bauxite mining act as a restraining factor for the global bauxite market.

Key Players Covered:

Some of the major companies in the bauxite market are Alcoa Corporation, Rio Tinto, Rusal, Norsk Hydro ASA, NALCO India, Hindalco, Ma’adeen, South32, CHALCO, Access Industries, Tata Steel, and Australian Bauxite Limited.

Regional Analysis:

The global bauxite market is studied across different regions like North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia Pacific holds a major share of the global market. As per the International Aluminum Institute statistics, about 67.5% of global primary aluminium in 2019 was produced in the Asia Pacific. China was the largest producer of primary aluminium and produced roughly 58% of it in 2019. Recently, Indonesia has re-entered the Bauxite Mining market after the ban imposed on the export of Bauxite in 2014. The government of Indonesia had banned the export of Bauxite to enhance its smelting industry.

Furthermore, Malaysia is also expected to re-enter the bauxite mining market. The government of Malaysia had banned bauxite mining in the country in 2015 intending to curb growing pollution due to sudden expansion in Bauxite production in the country. The key reason behind this expansion of production in the country was to fill the supply gap in 2014 after the Indonesian government banned bauxite export.

Europe is expected to contribute significantly during the forecast period. In European countries, demand for bauxite is mainly met by imports from Asian countries. Europe has a limited presence in the aluminium sector as few countries, such as Russia and Norway are the large-scale producers of primary aluminium in the region. Rising tensions with China owing to the origin of the COVID-19 pandemic and rising protectionist policies are expected to encourage domestic production of primary aluminium and spur bauxite demand in the long term.

Segmentation

Key Industry Developments

• In March 2019, Rio Tinto has completed the commissioning of the US$ 1.9 billion Amrun bauxite mine on the Cape York Peninsula in Queensland, Australia.


• In February 2020, The US-based First Bauxite’s subsidiary company Guyana Industrial Minerals Inc. (GINMIN), started its mining operation and processing plant at Bonasika mine, Essequibo Islands-West Demerara region. A US$ 100 million investment assurance can enhance it to a world-class operation.