Minimum Feasible Capacity for Specialty Grades of Hydrate and Alumina Plant

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.

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.

Kunwar Rajendra

Market Potential for Specialty Grades of Hydrate and Alumina

Hi Friends,

We all are well aware that about 10 to 11% of total alumina produced in the World is used for non-metallurgical applications. The hydrate or alumina used for non-metallurgical grades are categorized as Specialty grade or Specialty grades of hydrate and alumina. Generally, these specialty grades of hydrate and alumina are marketed at about 2 to 5 times of metallurgical grade hydrate and alumina. The production of specialty grade hydrates and alumina require additional facilities to attain the desired product quality particularly with respect to purity level, fineness and other specified properties depending on their various industrial applications. The production of specialty grades of hydrate and alumina are 15 to 20% higher than standard hydrate and alumina.

In present scenario, the increasing demand for a few selected grades of hydrate and alumina in domestic as well as International market has pushed the selling price to reasonably high level. Thus, all special alumina producers have jacked up the selling price of their products to a level beyond imagination.  

Here, I would like to put the example of Chemical grade hydrate which is used for manufacture of chemicals like Non-ferric alum, Sodium aluminate, Zeolite-4A and Fire retardant fillers. The production cost of Chemical grade hydrate lies between US$90 to US$100 per tonne in moderately efficient Alumina refineries. Presently, Chemical grade hydrate is being sold at a price between US$330 to US$350 per tonne depending on the geographic location of the plant and proximity to consumers. Similar is the market scenario for many other grades of specialty grade hydrate and alumina.

Observing the tremendous market potential for specialty grades of hydrate and alumina, existing alumina producers are modifying the process circuit for converting the plant from Metallurgical grade to Specialty grades of hydrate and alumina. Also, a few specialty grade alumina plants are under execution and planning stage in the World.

Looking at the past and the present trend, it can be concluded that market potential for specialty grades of hydrate and alumina in future is promising.

Seek your views / comments, if any.

If you like this article, then please press your rating as  +1  .
Thanks and regards.

Kunwar Rajendra