A new report from the Australian Aluminum Council (AAC) says the industry needs rapid access to competitive energy and critical mineral status to access global capital and remain competitive.
Marghanita Johnson, CEO of AAC, said: “Australia is one of the few countries in the world with a complete aluminum supply chain from mine to market. But this is now at risk due to disruptions and disruptions caused by energy transition challenges, uncertain environmental approvals and uneven global competition.”
Aluminum is a crucial part of green technologies such as solar panels, batteries and electric vehicles. The metal is a derivative of bauxite, of which Australia is a leading global producer and holds 11.7% of the world’s total bauxite reserves.
According to the AAC, the aluminum sector supports more than 20,700 direct and 55,000 indirect jobs and contributes more than A$18 billion to the Australian economy, with annual export earnings of more than A$15 billion.
Based on the AAC modeling of a hypothetical scenario, the economic impact of the closure of a single bauxite mine in Western Australia, which employed approximately 600 people, could lead to a loss of 10,000 indirect jobs and a reduction in gross domestic product (GDP) of A$2.7 billion. .
Some government support has been granted to the aluminum industry, most recently by the Queensland Government partnership with Rio Tinto to fund the long-term future of Australia’s second largest aluminum smelter, BSL.
To further strengthen sustainable aluminum production and innovation, the AAC recommended that the government should streamline environmental regulatory processes, enforce robust trade measures and implement a coordinated approach to energy planning across all jurisdictions to support the development of green metals.
In addition, the AAC repeated his call for the government to add bauxite, alumina and aluminum to Australia’s list of critical minerals.
“With the right conditions, the industry can continue to play a vital role in the nation’s national economy and industrial landscape, just as it has done since 1955,” Johnson concluded.
“AAC Highlights Risks to Australia’s Aluminum Supply Chain” was originally created and published by Mining technologya brand owned by GlobalData.
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