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Bauxite ASP needs correction for Indian Al to be competitive

It is to be noted that in the last 5 years, since the inception of MMDR Act 2015, no Metallurgical Grade Bauxite Mine has been successfully auctioned. This is largely linked to the unviable and arbitrary determination of Average Sale Price (ASP) of Metallurgical Grade of Bauxite linked with the selling price of the end product Aluminium.

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How aluminium market works

The Middle East companies rely on the availability of cheap power from the use of associated gas to have a very low cost of aluminium production and sell the metal at a profit even when the prices are low. As regards China, the top priority there is given to guaranteeing workplaces and maintaining high rates of economic development.

London Metal Exchange LME Aluminium

Every metal traded on the LME must conform to strict specifications regarding quality, lot size and shape. Each LME tradeable contract is likewise governed by rules covering (but not limited to) prompt dates, settlement terms, traded and cleared currencies and minimum tick size.

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Nov 18, 2016 Bauxite residue (red mud) with a high alumina content requires large amounts of fluxes during smelting, which increases the overall process cost, the energy consumption during smelting, and the acid consumption during slag leaching and decreases the throughput of bauxite residue in the smelting phase. Therefore, alumina was removed (or recovered) from bauxite residue by alkali …

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