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Alumina sees bauxite ore shortage for China amid Indonesian ban

Smelter Alumina makes prediction as exporter continues bar on ore sales to guard self-interest

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Alumina says the bauxite ban may increase costs. Photo: Bloomberg

The mainland may face a 10 million to 15 million tonne bauxite shortage if Indonesia's ban on ore exports last into next year, according to Andrew Wood, group executive of strategy and development at Melbourne-based miner, refiner and smelter Alumina.

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Indonesia banned exports of bauxite ore - which is used to make alumina, which is processed into aluminium - in January, seeking to spur investment in processing.

R. Sukhyar, the country's director-general of minerals and coal, said yesterday the curb would be kept in place.

Indonesia accounted for about 18 per cent of global bauxite production last year and was the largest supplier to China, according to Citigroup.

"The Indonesian ban, and the extent it holds, is obviously a key uncertainty for Chinese refiners," Wood said at a conference in Singapore.

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While there were a number of potential outcomes, all reasonable scenarios were likely to increase bauxite and alumina costs, he said.

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