Issue link: https://viewer.e-digitaleditions.com/i/111460
miningreview Fast Fact Bauxite is named after the village of Les Baux, in southern France, where it was identified in 1821. Now trumped by Australia, France was the world's largest producer of bauxite until 1939. the global economy waxes and wanes, with manufacturing making gains or sliding along the way, the effects will be felt quickly by the giant coalminers in Queensland, NSW and Victoria. Prices paid for Australian coal can zigzag all over the place. Back in July 2008, US$190 a tonne was the rate for thermal coal, but by March 2009, buyers were paying US$65 a tonne. At the time of writing, the rate was US$85 a tonne. "The latest forecasts of volumes and prices show two distinct trends," Bureau of Resources and Energy Economics executive director and chief economist Professor Quentin Grafton said late last year. "First, the prices of many resources have moderated from historic highs in 2011 and further declines are expected over the medium term in US dollar terms relative to these peaks. Second, Australian export volumes, especially in terms of bulk commodities, are growing rapidly and are expected to do so for several years to come." The industry, then, has seen seesawing fortunes. All the while, new taxes and increasing labour costs make life hard for coalminers. BHP Billiton has closed a mine in Queensland's Bowen Basin, resulting in 300 jobs lost. Some analysts believe more closures are on the way. But as the rules of supply and demand dictate prices, it's inevitable that fewer mines will lead to lower supply, which will lead to higher prices (factoring in constant demand). If this happens, higher prices may make closed mines cost-effective once again. Meanwhile, Indonesia and Colombia are out there competing with us for sales to the important Asian markets. BAUXITE: Strong enough to take it Heard of bauxite? No? Here's a clue: You're flying in it. Bauxite is the ore used to make aluminium. Australia has the second-largest reserves in the world and is the largest producer of the raw material, says Michael Ison, manager of policy and research at the Australian Aluminium Council. The Weipa deposit in Queensland is high quality – nearly 50 per cent alumina – as is the deposit at Gove in the NT. The deposits in the Darling Range in WA are a lower grade – about 30 per cent alumina – with a higher silica content, " EFIC dId morE than making the ore more costly to process. The end product is aluminium, which is commonly used to make aeroplanes, buildings, bicycles and drink cans. After oscillating wildly during the GFC, the price of aluminium is about where it was seven years ago. One of Australia's major export markets is China, which is trying to encourage its own aluminium industry to grow. Chinese bauxite imports from Indonesia are already down, Ison says, opening the market a little more for Australian producers. The expectation of steady demand for bauxite has Rio Tinto considering expanding its Weipa mine. "Globally the demand for aluminium is still there," Ison says, "despite the fact that the metal is in oversupply." The continued urbanisation of China and India will see to that, he adds, as will demand from the automotive and aerospace industries. Guinea, in West Africa, has the biggest reserves of bauxite in the world. Political instability makes life interesting for companies wanting to do business there, but logic dictates that supply from Guinea will increase as the region calms, however many years that may take. provIdE FInanCIal support. thEy hElpEd us EstablIsh a traCk rECord." Cory stevens, CEo, lean Field developments Contact EFIC's leela hanson at 08 9325 7872 overcoming financial barriers for exporters