A peak body has renewed its call to include bauxite, alumina and aluminium on Australia’s critical minerals list in the face of mounting challenges for the industry.

Australian Aluminium Council chief executive officer Marghanita Johnson emphasised the need for immediate action to protect the aluminium industry to avoid the same fate as nickel.

It comes as a new report, Vulnerabilities & Opportunities in Australia’s Upstream Aluminium Sectors, highlights the increasing risks to Australia’s domestic upstream supply chain, which faces rising costs and prolonged regulatory approvals.

Aluminium was included in a new strategic mineral list when the Federal Government announced an updated critical minerals list in December.

Related: Industry outcry over revamped critical minerals list

Ms Johnson said this acknowledged the metal’s importance in the transition to net zero, but did not come with much-needed policy support.

“We do not want aluminium to become the new nickel which until early this year was also considered a strategic mineral,” she said.

“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 Australian 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.”

These included the Gladstone-based Yarwun and QAL refineries in Queensland. Owner Rio Tinto booked a $1.175 billion impairment charge against the two refineries in its second-quarter results last year.

The Vulnerabilities & Opportunities in Australia’s Upstream Aluminium Sectors report highlighted the need for a streamlined regulatory process to unlock the potential of Australia’s bauxite resources. 

The Australian Aluminium Council said that while Indonesian refineries were set to expand alumina capacity by 6Mt over the next five years, Australia faced mounting challenges.

These include 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.”

Aluminium is Australia’s highest earning manufacturing export. The industry directly employs more than 20,000 people, including 6600 full time equivalent contractors. It also indirectly supports a further 55,000 families predominantly in regional Australia. 

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