Aluminium, alumina & bauxite must be “critical minerals” to avoid nickel fate: AAC

The Australian Aluminium Council (AAC) has renewed its calls for the inclusion of bauxite, alumina and aluminium to Australia’s Critical Minerals List to avoid the same fate as the nickel industry.
This comes as a new report, Vulnerabilities & Opportunities in Australia’s Upstream Aluminium Sectors, highlights growing risks to the sector’s supply chain due to heightened geopolitical risk, rising costs and prolonged regulatory approvals.
AAC chief executive Marghanita Johnson says the current inclusion of aluminium on Australia’s Strategic Mineral List acknowledges the metal’s importance in the transition to net zero but it also lacks policy support.
“Instead, it is a ‘watchlist’ of minerals that would meet the criteria for being a critical mineral but are not currently considered vulnerable to disruption,” she said.
“We do not want aluminium to become the new nickel which until early this year was also considered a strategic mineral.
“The Government’s decision to move it to the Critical Minerals List in February was too little too late.
“The industry has been vocal in urging the [Federal] Government to recognise the growing threats to our bauxite and alumina sectors.
“In the past 18 months, three alumina refineries have been impaired and one has been curtailed – we need the Government to act.”
The report highlights the need for a streamlined regulatory process as Indonesian refineries are set to expand alumina capacity by 6mt over the next five years.
Australia faces mounting challenges, including rising capital, labour, and energy costs, compounded by lengthy regulatory approvals.
“One of the greatest cost increases expected over the next five years will come from delays in environmental approvals, limiting access to bauxite for our alumina refineries,” Ms Johnson said.
“Indonesia can approve and build an integrated bauxite mine and alumina refinery faster than Australia can approve a bauxite mine.”