Hi Friends,
In previous posts, we have already discussed the major cost component in production of calcined alumina. In present post, we will highlight the critical issues which are essentially required to kept in mind in taking over existing Alumina - Aluminium complex in any part of the globe.
As elaborated in earlier posts, sharp increase in landed cost of input raw materials have forced closure of many Alumina-Alumina complex. Though the high input cost as well as lower LME price of aluminium in the recent past has affected the profitability of almost all aluminium companies in the World but its impact has been more in plants operative in European countries for added reasons known to all of us.
Many companies are struggling hard from last many years for setting up Alumina - Aluminium complex but stringent environmental guidelines and political instability in respective countries have delayed the statutory clearances and thereby implementation of projects. It is needless to mention that setting up the capital intensive projects coupled with socio-political issues have further aggravated the industrial growth.
Even today, a few Alumina refineries are operative with production cost of around US$400 per tonne of calcined alumina where as the its selling price is close to US$ 300 per tonne. It is okay to keep the plant operative for short duration but in the long run it does not make sense operating such plants incurring huge losses for the company.
Availability of captive Bauxite mines
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