The Australian Aluminium Council (AAC) is calling for the country to secure the future of its aluminium industry.
Among other points, the AAC would like to see the metal to be designated as a critical mineral, and wants aluminium companies working in Australia to have “rapid access to competitive energy.”
According to the AAC, the aluminium industry added AU$18 billion to the Australian economy in 2023, along with over 75,000 full-time equivalent jobs that pay 63 percent higher than the national manufacturing average.
Over 20,700 direct and 55,000 indirect jobs are supported by the Australian aluminium industry, with the majority in regional areas. The industry currently holds a record of AU$15 billion in annual export revenue.
The report also outlines the economic contributions of the aluminium industry at a state level, with Western Australia on top at AU$5.7 billion and South Australia contributing the least at AU$78 million.
The AAC states that these numbers indicate how the sector remains internationally competitive, but show there is a need for the Australian government to “ensure a supportive environment for investment.”
The AAC made the four recommendations below on government and industry cooperation in Australia’s aluminium industry, saying that if implemented they should allow the country to remain a leader in the space.
The report also models a hypothetical scenario to demonstrate the aluminium industry’s impact on the Australian economy, saying that the closure of a single bauxite mine in Western Australia with an average of 600 employees could lead to less than 10,000 indirect jobs and a AU$2.7 billion reduction to GDP.
“Australia is one of the very few countries anywhere in the world with a complete mine-to-market aluminium supply chain,” explained Johnson, adding that risks to the industry’s future are being created by challenges in the energy transition, uncertain environmental approvals and uneven global competition.
“Aluminium is vital to Australia’s economy and a critical component of green technologies like solar panels, electric vehicles and batteries. Maintaining strong manufacturing capabilities needs to be a domestic priority.”
Significant advances in Australia’s aluminium sector have been made this year.
Data from the AAC shows that Australia is the world’s largest exporter and second largest producer of alumina. The country also remains one of the world’s largest producers of bauxite.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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