TOPIC: Globalisation » Economy » Raw Materials » Mining » Aluminium

Definition

Basic 
Aluminium is a metal which can be found in nature, mainly in bauxite as aluminium oxide. Aluminium is an element and is seated number 13 in the Periodic Table. Natural aluminium is rarely found in nature in its free form. It is mainly found in oxygen deficient environment such as volcanic mud. 
Aluminium is therefore produced in aluminium smelters where aluminium oxide, mainly from bauxite, is smelted in order to make aluminium alloys. Aluminium is noted for its remarkable strength but also for its light weight. 

Aluminium is remarkable for its ability to resist corrosion, due to the phenomenon of passivation, and its light weight. Due to the high strength to weight ratio, aluminium is used extensively in construction and transportation industries. One important structural limitation of aluminium and aluminium alloys is the low fatigue strength which. Having no well defined fatigue limit, aluminium will eventually have fatigue failure, even under very small cyclic loadings. 

History

Origin 
Aluminium is created with fusion of magnesium and hydrogen in large stars or in supernova. As such aluminium is a limited resource. Aluminium was discovered in 1821 when Pierre Bertheir developed a method to produce aluminium out of aluminium oxide from bauxite. In the years after Bertheir discovery, aluminium became a luxury item and valued more than gold.

Mass Production
In 1886 the Hall-Hérould processing was developed which made it possible to produce aluminium in mass quantities. The role of aluminium changed with this discovery, taking it from jewellery and fine arts into one of the most important metal in the construction, packaging, aerospace and transport industries. Today aluminium is the second most used metal after steel. 

Money Involved

Cost 
In 2008 the global aluminium production reached estimated value of US$ 93 billion. It is forecasted that the global aluminium production will increase to US$ 122.8 billion in 2013.


Use

Composition 
Structural components made from aluminium and its alloys are vital to the aerospace industry and very important in other areas of transportation and construction industries. Aluminium is heavily used in the packaging industry. Aluminium drinking cans, aluminium paper and various types of different aluminium packaging items are in everyday use. 


Production

Mining
Bauxite ore, being the most important aluminium ore, is mined in all over the world. Bauxite is the main aluminium ore and is harvested by strip-mining (surface mining) with little or no overburden. As a general rule, about 4 kilos of bauxite is needed to get about 2 kilos of alumina which gives about 1 kilo of primary aluminium metal.

Electrolysis
Approximately 95% of the world’s bauxite productions are processed into aluminium and aluminium alloys in smelters where the method of electrolysis (Hall-Hérould processing) is used to create various different aluminium alloys.
  
Electrolysis/Hall-Hérould processing is highly energy demanding and is bauxite shipped to smelters which are mainly located in areas where access to electricity is both stable and relatively inexpensive. Electricity makes up for about 20-40 % of the cost of producing aluminium, depending on location of smelter and energy price. 

Challenges

Energy Demanding 
Aluminium smelting is energy demanding and requires stable access to electricity. Production of 1 kilogram of aluminium requires about 15 Kilowatt hours in most smelters. New technology aims to lower the amount of electricity needed and have some state-of-the-art smelters managed to produce 1 kilogram of aluminium out of 12.8 Kilowatt hours. 


Possibilities

Recycling 
Aluminium can be recycled without losing its natural qualities. 
Melting of the aluminium scrap only requires about 5% of the energy needed to produce Aluminium from aluminium ore. 


Key Countries

Production of Coal by Country
(numbers from 2010 in tons) 
1. Peoples Republic of China (16.800.000) 
2. Russia (3.850.000) 
3. Canada (2.920.000) 
4. Australia (1.950.000) 
5. United States (1.720.000) 

Consumption of Bauxite
(numbers from 2010 in tons) 
1. Australia (70.000.000) 
2. China (40.000.000) 
3. Brazil (32.100.000) 
4. India (18.000.000) 
5. Guinea (17.400.000) 

Key Companies

Production of Aluminium
1. United Company Rusal 
2. Rio Tinto Alcan 
3. Alcoa 
4. Aluminium Corp. of China 
5. Century Aluminum 

Prospect

Future Prospects 
The aluminium industry will continue to grow as the demand for aluminium is increasing. It is estimated that the global aluminium production will increase over 45% in 2013 (49.2 million tons) compare to 2008 (33.9 million tons). 

Profit, People, Planet

Global Compact 
United Company Rusal, Rio Tinto Alcan and Alcoa all participate in the Global Compact. 

Corporate Social Responsibility 
United Company Rusal, Rio Tinto Alcan and Alcoa all have specific CSR policies that are clearly visible when using their websites.  

Bottom of the Pyramid 
Through thorough research none of the main aluminium companies have participated in Bottom of the Pyramid projects.

Initiatives  
Among community projects of Alcoa is the “10 Million Trees” project which aims at neutralising carbon emission of Alcoa’s plants and smelters by planting trees around the world. 

Miscellaneous

Clear Metal 
Aluminium foil is made out alloys that are 92-98% clear aluminium. 

Luxury Material 
Aluminium was chosen for the apex in the Washington Memorial in 1884. At that time aluminium was valued the same as silver. 

Spelling
There are two correct ways of spelling the metals name in English, aluminium and aluminum, the latter mainly being used in North America. 

Transition to Globalisation

Aluminum Panels Set To Take On Pollution As 'Smog Eaters
With new technology aluminium panels could be used to battle air pollution and smog in cities around the world. 
Globalisation > Environment > Pollution > Air 


Transition to Political Tools

Chinese Power Issues Could Affect Aluminum, Steel, Nickel Pig Iron Output 
Due to tightness in the Chinese power market the affects could lead to rising aluminium prices. Political Tools > National > China > Dom. Policies > Economy > Energy


Transition to Political Actors

European Aluminium Association - EAA 
The European Aluminium Association (EAA) represents the aluminium industry in Europe. It aims to secure sustainable growth of the market for aluminium whilst maintaining and 
improving the image of the industry. 
Political Actors > Business > Interest Org.