Alumina or aluminium oxide (Al2O3), the key raw material for producing aluminium, is a white powder extracted from bauxite through Bayer process. The growing demand for aluminium across the world is leading to an increased number of refineries. Also, since the significance of the ore in the upstream aluminium sector is inevitable, more and more aluminium producers are building refineries or expanding existing facilities to secure the source of alumina.
According to the International Aluminium Institute, the world alumina production in 2021 totalled 138.275 million tonnes compared to 133,078 million tonnes a year ago. China was the leading producer, churning out about 74 million tonnes, followed by Australia, producing 21 million tonnes, Brazil with 11 million tonnes, India with 6.8 million tonnes, and Russia with 3.1 million tonnes.
As said earlier, aluminium is 100% recyclable, and thus, post-consumer aluminium scrap can be re- melted at casthouse and turned into an original alloy, at a cheaper cost and with less energy. Recycling scrap aluminium requires only 5 per cent of the energy needed for producing primary aluminium through the electrolysis of alumina. The recycling of aluminium scrap is cost-saving, even after the expenses of collection, separation and recycling are taken into account. Re-use of post-consumer aluminium scrap, in a way, also plays a crucial role in saving natural resources. The aluminium scrap market is mainly led by China, the United States, the European Union, and India, contributing to the development of the world economy and production.
Now that we know the leading alumina producing countries, the time has come to explore the top alumina refineries in the world by their capacities.
Chalco : There is no brownie point in guessing that a refinery from China would top the list. Aluminium Corporation of China Limited (referred to as Chalco) is China’s largest integrated aluminium firm engaged in the entire value chain of the industry, with a strong profile of assets among global competitors. In 2021, the state-owned multinational company produced 16.23 million tonnes of alumina, an increase of 11.73% from the previous year, accounting for approximately 23.6% of total domestic output in the same year. Alumina sales were 9.12 million tonnes, up by 17.76% year-on-year.
Hydro Alunorte : The world’s largest alumina refinery outside China, Hydro Alunorte has an annual alumina production capacity of 6.3 million tonnes. Since its commissioning in 1995, the refinery has undergone three expansions that increased its production capacity. The company supplies its aluminium ore to both overseas and domestic companies. On average, 14% of its production goes to the domestic market, while the remaining 86% to international.
In the first nine months of 2021, Hydro produced 4.705 million tonnes of alumina, up by 16.26 per cent from the corresponding period of the last year. In Q3, Hydro’s alumina output was 1.579 million tonnes, an increase of 47 per cent over a year.
AlCoa Pinjarra alumina refinery : Ranked 3rd in the world for having 4.7 million tonnes of alumina refining capacity, Pinjarra refinery is owned by Alcoa World Alumina and Chemicals (AWAC), the joint venture between Alumina Limited (40% share) and Alcoa Inc. (60% share). Alcoa, as a whole, produced 13.259 million tonnes of alumina in 2021, down year-on-year from 13.475 million tonnes.
South32 Worsley alumina refinery: The history of mining by South32 dates back to the 1960s but it was only in the 1980s that the company initiated both mining and refining the ore. South32 holds 86% of the share in Worsley Alumina, while 10% of the remaining is owned by Japan Alumina Associates (Australia) Pty Ltd and 4% by Sojitz Alumina Pty Ltd. Over the past three decades, the refinery’s production has increased four-fold, making Worsley Alumina the second largest and lowest-cost alumina producer in the world, with an annual capacity of 4.6 million tonnes. At Worsley, saleable production of alumina was 3.963 million tonnes in FY2021 ended June 30, close to the nameplate capacity. Total volume of alumina produced by South32 in FY21 was 5.36 million tonnes, compared to 5.26 million tonnes in FY20.
Queensland Alumina Limited (QAL): Queensland Alumina Limited commenced in March 1967 with an annual production rate of 600,000 tonnes, but today it is one of the world’s largest refineries with some 3.95 million tonnes per year of output. The refinery covers 80 hectares of a 3050 hectare site on the south-east outskirts of the city of Gladstone. QAL is owned by two shareholders, Rio Tinto Aluminium (80 per cent) and Rusal (20 per cent).
NALCO Damanjodi: NALCO’s alumina refinery is located at Damanjodi, hence, the name. The present capacity of the refinery is 2.75 million tonnes per year, which meets the company’s requirements for primary aluminium production, while the surplus being sold to third parties in the export market. NALCO’s production of alumina in FY2021 stood at 20,85,500 tonnes, down by 3.47 per cent from 21,60,500 tonnes. Till year-end, it exported 11,84,680 tonnes of alumina.
Aughinish alumina refinery: Aughinish is UC Rusal's largest refinery and the largest in Europe, with a nameplate capacity of 2 million tonnes per annum. In 2021, Aughinish produced 1.88 million tonnes of alumina, or 23% of the company’s total output.
Al Taweelah alumina refinery: Al Taweelah, 100% owned by Emirates Global Aluminium (EGA), is the first alumina refinery in the United Arab Emirates and second in the Middle East. It is one of the new age refineries, equipped with the latest technologies. Located at 1.4 square kilometres, the refinery has a nameplate capacity of 2 million tonnes per annum and meets 40 per cent of Emirates Global Aluminium’s (EGA) alumina requirements.
