Minimum Feasible Capacity of Specialty Grades of Alumina Refinery

Hi Friends,

In earlier post, we have already discussed about minimum feasible capacity of smelter grade Alumina refinery which is techno-economically viable to set up in any part of the globe. In present post, we will briefly discuss about minimum feasible capacity of specialty grades of  Alumina Plant.

It is well known fact that specialty grades of hydrate and alumina are marketed at premium price ranging from three times to five times of those of chemical grade hydrate and standard calcined alumina where as the production of specialty grades of hydrate and special alumina are approximately 15% to 20% higher than those of chemical grade hydrate and smelter grade alumina respectively. Because of increasing demand of specialty grades of hydrate and calcined alumina for various non-metallurgical applications all over the World has tremendous market potential with reasonably high profit margin. Thus, it gives us opportunity to think about the minimum feasible capacity of specialty grade alumina plant which can give high returns resulting in low pack back period. 

The preliminary study reveals that specialty grade alumina plant with 25,000 tonnes per annum production capacity is the minimum feasible capacity considering the availability of basic technological equipment for continuous operation on commercial scale. The estimated capital investment for such plant will be around US$ 25 million excluding the investment towards land and infrastructure facilities. The average manufacture cost of specialty grade alumina is estimated at around US$ 310 per tonne inclusive of all financial charges where as minimum  selling price will be ranging from US$ 600 to US$ 1000 per tonne of specialty grade alumina. Taking average level of sales realization at around US$ 800 per tonne of specialty grade alumina, the pay back period for total capital investment works out to less than 3 years. Specialty grades of hydrate have more profit margin compared to specialty grades of calcined alumina.

The preliminary financial indices prompt us to go ahead for execution immediately. However, It is always advisable to check the following basic information before taking final decision for execution-

1. Availability of about 3.0 million tonnes of chemical grade bauxite,
2. Required utilities and services,
3. About 20 hectares of land for plant,
4. About 50 cubic meters per hour of industrial grade water,
5. Other basic input raw materials and skilled workforce.

In addition to all stated above requirements, the detailed feasibility study is a must to confirm the market scenario, fixing of product-mix, finalizing the required process technology and re-look at outcome of final financial parameters. Execution of such plants definitely require technical competence in process expert as a process technology supplier for the project, otherwise execution with superficial knowledge about the process may be detrimental for the stake holders in the project - this is just a word of caution from our expert team.

We feel that you will like the article on "Marketing potential of Special Hydrates and Aluminas".

These are just the basis to initiate working on this lucrative project. Please put your views / suggestions / remarks / comments, if any.

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Thanks and regards.

Rajendra Kunwar
rajendra@ceti.co.in
www.ceti.co.in