Industry growth is projected to slow down as bauxite demand from China begins to ease.
Melbourne, Australia (PRWEB) October 21, 2013
Australia is the world's largest producer of bauxite, accounting for about one-third of global output. Bauxite production in Australia is expected to total approximately 78.7 million tonnes in 2013-14, compared with 65.5 million tonnes in 2008-09 as major mining companies increased output and production. Most bauxite mined in Australia is locally processed into alumina, with approximately 17.7 million tonnes, valued at an estimated $412.6 million, destined for export in 2013-14. Bauxite imports are negligible. There are just three companies in the industry that account for the majority of the industry's revenue. These three firms - Rio Tinto, Alcoa and BHP Billiton - account for the bulk of production and also use a high proportion of bauxite for their own alumina smelting operations. There are some small firms in the industry that are involved in joint ventures with BHP Billiton, or are small bauxite exploration and development companies. However, these do not currently mine any significant bauxite volumes.
The Bauxite Mining industry is expected to generate revenue of $1.8 billion in 2013-14, up from just $823.9 million in 2008-09. This represents an annualised increase of 17.3% over the five years. However, revenue is expected to grow by just 2.5% in 2013-14, as weaker prices largely offset higher output levels for the year. IBISWorld industry analyst Alen Allday states “export volumes and domestic demand have increased over the five years through 2013-14, while the stronger Australian dollar contributed to significantly higher industry revenue growth since 2008-09.” With higher industry revenue and pricing in the past five years, profit levels have also grown strongly. According to Allday, “industry performance is expected to slow during the five years through 2018-19 as production increases at a slower rate and pricing increases ease. Demand from China is also expected to increase at a slower rate over the period, as the Chinese economy grows at a lower rate than in previous years.”
The Bauxite Mining industry is highly concentrated, with only three enterprises accounting for nearly all of the industry's production. Other participants in the industry hold small minority shares in bauxite mines or are minor bauxite exploration and development companies with low revenue levels. The major players in the industry are Rio Tinto, Alcoa of Australia and BHP Billiton. For more information, visit IBISWorld’s Bauxite Mining report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry mine bauxite, which is the raw material from which alumina and aluminium is produced.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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