APP7TDIX {ABLE A-I - Africa and the aluminum industry

Control and Affiliations of World Primary Aluninium Capacity,

1964,

,'and Expanst.one (thousan'dsof short tons)

Control or affilia~ion Existing

1964

Grecce (se~ ~eynolds)••o,

~"'.'.:""\ ^I .,....,.... ~._'.~. _~~\ .~^.. "~,, Greece (with Peehiney) ••

Kuwait , . Tote^{1. ;} ~ix le~"'~ cor:'anicr'\")4,258

OtheF private ,?2Llparl:!-es(

10)

Argentina. , ••••.•..••..•

E/CN • 14/INR/100 Appendix A Page 15

APPENDIX TABLE A-I

Control and Affiliations of World Primary Aluminium Capacity, 1964, and Expansions (thousands of short tons)

In canstruc- P'Larmsd"f,,~" '.

ti on or or

Yugoslavia "

<0.... ..

⁵³

J:3SR •••• , , • " •• , , • , • • • • • ~60

,•. ';~ptal, Communist ;0vernments1 ,682.

• ·.Control not yet _cEterm~ned

• .J_:~.• -: Portugese ."'tntala ...-...~

.. -":,l'itf1.::iH.Q.bve"t'rink'lits: -,' ....

...• ,"

llon~2brr{~[~~s·t

..' ,

,li·u,-s·'tr"J.

^{a . '"} ^<' ^{' ;}^,,- ^..

Egypt , • • . • .

Indonesia_{~ ~} '.' ..'.'.'

'.. n _. ,,_,.Norway (inclu(iing.. .

• ,'.,1',' ";),L .-.!'ot'sk:Hyo.ro) ".•.•_,~,.

,', .H,tn _~.!~ r,,£f;'i,R!r.l?ill\:nrakia ..

- - c)" ",·.fi':~

t

^IGermany •.•••••••••

•. ...

~ --H~ng~r;y"

..

. ,

⁰ ^• ^, • • • • , . , • • • •" _

North Korea ••~ ••~.~.~.~

.•: 'cSoiil'ces ,', i(JomJ'any reports ·tostbcl,holders , publicity releases, Metal . . .. ,1lulletin (Lo!1don), Alumiilium issue, December, 1963.

l! 'Aft~i;~t{remen'

of ",000 tons in 1965.

Y

The French company Ugj.ne cci-opeX:ates closely with Pechiney.

~/CtT•14/Iiffi/100 _

Ap~odj.., A -Psg!,c ;1.6 ..

APPENDIX 1',\BLE • -2 - PBIKCIP.cL P!1'~RJi[J\TIO:JALJOINT VI2\fTURES _....'\TD COlf30RTIUi~,:) I;\T j,t.,,; ·,:OlCLJ ALUlln~1flil ,I~~DUS.2RY, 1964

..Gp.!!1!,guy,. plant .Locata on.

... and participants

..Product'1,!!:!,d appr-oxa-«

; mate capacity or ' investment

NORTH;<Ji':1nCA' "

Sheet reroll stock

-• 100,000 SAO:l.'t

tons,

··capacity,

• $)8 miU111A

cost.

Can-a:da;;';;-;::-;;.;-;~;:·;.;'rCari'B:diari Bri iishAluminium Com: ;r:r;iJnarY aluminium -pany Limited (Baie Comeau, _:~e- : 95!OOo.short tl"DS, bee) : British Aluminium Company<c/aj;lacity

Limited

(60%) ;

~ebecNorth : Sliore Paper Co.

(40;,).

r :

United

States•••••••••• _~ Alroll Ioc. (Oswego,

N.Y.)

Aluminium Limited,

(50.1%) ;

Cerro Co~ration (16.65~);

balance held by 3c~vill Manu-: faManu-:ct.uring Co. and Bridgep<,rt

Brass Co. of National Distill-ers andChemiCal Corpcration.

Intalco Alu8inium Corp. _(Bellin~Ptimary aluminium project ham, :.'ashincton) : fechiney : -

73,000 8ll=1; tonI,

(Com;a~ie'deProduits 'Chimiques:

oapao11i7, 860 million,

et Electrometallur ::;iqUes)

(251'0

estimated

coate.

pius

interest through

Howe"

Soun~)

;

rtO~8 ~ound Company

(257(,) ;

American !Ietal Climax, Itlc. (5C;)

Hexic·Q~_:"'.'~,^{••••.: .•.}~^{.••••• :} AluI!i~nio, ^{3 •.}^.(I...._.dB C~V^A (Vera Cruz) ; Aluminium Company of America

(35%);

American -and Foreign Power Co' (14%) Intercontinental

S.A. &

other interests

(51%) •.

Primary aluminium

-22,000

'short t ..ns, capacity; 'If1

is.)

million C'"'St •

EUROPE

Norway. _> 0: • • • • • ..----~- .'--'"....

-Mosj~en AI~inium

Co, (MsjPen) Aluminium Company of America

(50%):

Elektrokeini'sk

(507')· .

Primary aluminium

"--"'-'--'--;"'"':-"':-::-F'D/lrN'otskeNi tridaktieselskap.J : . . . . (ttydehavn and Tyss edal) : Alumi-:

nium'Lj:'tfllted{SO

7);

British : Aluminium

(50%). ..'

.v· -'.:"',

.L~"

-Continued

:::/CJ'1.14/I!lR/100 Appendix A Page 17

A.PI;:N1I_~': '0,:.':-'L-~ ~~-2 '.TENI'UR~3 J-~\:J :-)1~L)0!

.rr.

• I-~~I~~CI_~'~i.L L'Fr-~RN TIO!\L'.l. <T~nT'T

I~T ';'ITL~ ;,'O!-~LD ''dli"::,cIJ'JTF~~ T'Dl' .:Ti=lY,

1964

.iLunu.n i.u,r. Limited

(r:tO)':')

Nor~·~

-r,,regian Lnte.r csts (50/~)"

Spr-Norge Aluminium Co.

(:~usnes) Sl,d. 58 AluMinium (50),) ; French bank.i.ng _ int?rests, Compadec

(50,,)

"ylro

(51,) ;

Harvey Aluminium Inc.

(49",)

Norsk frimc'r:,T a Lutru.nium

project 669000 ^{short tons}9 capacity

Sweden

Netherlands, ••' ••••.•••

Spain '" ~ ,. ,

Svenska l'lete.ll verken (Kubikf;n-:

~Jor.::~ ~ncl_ l'._~:;,nsbo) Aluminium Lir~l:i^tcd (22 ,) ; SI·.;eciish investorZ'1

(78;).

&luminium Delfzijl

r.v.

(Delfzijl) _~ Eilliton J'iatac:,ap i j 1i.'J.

(16

2/3,)

l~onilrlij~s'n^8,i"'T¹[o'.:'}dschc

IIocgoyens on >2taalfabrie;(,en

J:J _~V~ (}O 'j',.) ) ~~.ri'jr:_ AIl.;,u;i-ni.um \',:,

1/'

0,)

:..:. ... -"_) _) I •

.;\.1umini0 -SspaL-ol (,ja~in2!1i:-;0) Pec hi.ney ("51,) ; ":aise:"

A1u;,JiniuLl (15

5'.:-).

Pri:nc.ry al uru ni um capa-city -

30,000

short tone,

c~pacity

s8Eifabrica-ti on ,

PriTj!;..d'~r a.I urrri n i.um

-33,000 shurt tons, capa-8ity ~ 28 million cost.

?rim~r~r alurrinium

99 ° 0 0 short tons,

capa ci,ty,

Alur1iniJ

e,8

Cal iei a (La Corun.i ) F':'ir:l[ir^',r alu~:(inium Fechiney (1~i5,') ; ICai~~er 14,000 s ho rt tons, Aluminium .( 15'/""); others (70}',;) capacity.

Greece ••• ~ ••• ~ ••⁰ ^• ~ ~ ^• Aluminium de Groce (Aspr&

;,piti:l) Ppclnney (SlJi') ;

Iteyno Lds !Jetals Company

(17i),:

Greek int(~rc~~:ts

(33'/,,)

Prim2ry aluminium ~r1ject

~69,OOO 'short tons, cdpa-city, 220₉₀₀₀ short ~o~s

of 31umi~a, capacity;

,114

million cost.

- Continued

':jCN. 14/INR/1 00 Appendix i,

Page 18

.b.PPJ:o.:}:.JI~~_ ',:,_~~~-I~

AND CO;\T,~On'l'IUI~-,

t. -2 - _C,1C~LTLl_L I;JI1~' y' ).TIU,T.-.L JC1T--LJ -.J~-;·T'l'U;~d~·~

~~lL~ ,~,~~~I' .',UT,' ..1-:".", I-~·LI~,,'-;~T1:..Y, '1~'l6,-+ (co!i~inued)

I c::rY, '1

Republic of Guinea •.••

Republic of Cameroun

Cornp any , 111cm'~ 1ccati 01,1

c'.nd ~--3l-·-':,icipu.lltS

Bl~it5.sh ./\lumj.niU8; Compar.y, I.<~J[;:L_o~

ted (UK _2n~ other countries)

~'ieynold:3 l:C?t_-:,_:';'~c· Comp any

(47.75,)

-r

mpe ri a L Aluminium Co~ (.~:;~gland ,. e : and 1,-ales) ~ Al-,-~minum Company

.: 'of AIr.2rica (49

'I:.) )

L'lpe:rial Chemical Industries Limited (~51 j',,).

James BOGth Aluminium Ltl.

iv«:

rious locations) _~ 'Kaiser Al'_minu:n &, Charri o a.l Corp Delta Metal Company Ltd

Volt~: Alunulliurn OOa 1t1. (1'r;ma)

K.a~s 3:;'~ ;'~] u;:-:~r1.it.;;.::J end ChvJi o s.L Co ro , (:!c\.:·) ; ~eynold~ ll':p+,,~lSl Company (JG~I").

Cie (:ie::: -;"{au,xit23 r:e _{Cl.A.~_n8e} (Boke) E.-rTTc;:,r Ahlminium ~nc.

(S1;c) 9 Gov8rnncnt of Cuine a

!.1-'): )

\ .. .-' i-', ~

~r~a9 Cie Internationale ~our

III prcdu cti on de 1 !Alumin8 (Fria) Olin ~~~thieson Cllsmical Corp.

(497:)

~ ^Pechiney ^an:' ^U^gine ~

(26,)

0 British Aluminium Co.

Ltd. (10')") ;~iss Aluminium (10/,) ; VereinitIte Aluminium C.ierke, A.G. (5,).

Cia Camerounaise de L'Aluminium ('llucam), (Edea) : Pechiney-Uc-ine (r39i)

;

Belgian

~ f;3bricators _(11~)

r ppr o.:

.inv^,38.f:;:fl8i.:t

int"9i~~.::i.~at,

eo

'tjrOUV_CE::T's

v;;:t:r'ious countri8::'; ;...

1:~4 !nillion in tot;:,tl

ussets~ excluding 50,080 short _{t0DS 5}

cap8~ity~

port- ,30 to 40 m~_l.liGr~

inve:::;tme;lt esti.nrat cd ,

E/CN • 14!lJHU/109 Appendix A Page 19

APFfNDIX ·1'''.BLE A 2 - PRINOIPAL INTERNATIONAL JOINT V<iJ'TTURES

AND CONSORTIUN3 IN THL.iORI,j) ALUFINlm: INDU,STRY, 1964 (continued)

Home country

India .

AUSTRALIA ..

Company, plant location and participants

Indian Aluminium Company (Xerala and Orissa) ; Aluminium Limited (65~)

;

Indian investors

(35%)

Madras Aluminium 00. (Madras) Monteca;tini (2C1i'v) ; Indian in-ves tors (8Cfj,).

Aluminium smelter (Maharashtra) joint fentur~ of Vereinigte Alu.

minium _~erke, Governments of'In-dia

&

Maharashtra, and private rrrvcstOTS"- .,.

Comalco Aluminium (BelIBay) Limited (Tasmania) ; Kaiser

~luminium

&

Chemical Corp.

(33

1/3~)

;

Conzinc Riotinto of Australia Ltd.

(33

113 ".) ; Government of Tasmania

(33 1/3%)

Comclco Ineustries Pty. Ltd.

(various locations) ; Kaiser Aluminium andChemicaJ Corp.

(5ar,,) ; Con zinc Riotinto

(5Wc)

:Froducts and approximate

• capacity or investment

Primary aluminium project - 28,000 short tons, capacity.

Queensland A~umina Ltd. (Glad-stone) : Kaiser J..Lurrri.ni.um and Chemical Corp. (52;) ; Pechi.ney

(2Cijc) ;

Aluminium Limited

(20/)

Conzinc Riotint0

(8;.)

Alcoa of l1ustralia Hy. (various locations) ; r.Lunrini.um Company of ~merica (51~)

;

halance of in-:

vestment by ,Iestern Mining Corp.,:

Ltd. ; NOrth Broken Hill, Ltd.;

and Broken TIill South, Ltd.

Alumina project short tons of primary aluminium capacity, plus bauxite, alumina and semifabrication.

- Continued

EleN •14/INR/1<)0 Appendix A Page 20

. AP?ENDIX TABLEA-2 - PRINGIPALINTS':N'lTIOltAL' JOINTV'c1JTUIlBS AND GON;:,ORTlur.n

m

^THE 'O~,LD ^AtUHINUL TImUS'l'RY, 19~4 (continued).

Rome country'. ~,;Gompany,plant-location and participants

.

. .._-.---~

..

- ^-..-_...^'-_._~

'Products and approximate : capd~ity or irivestment J.AI'AN~•• • •,~•••••~ • • •,.~ Nippon Light Metal (various

10-cations) Aluminiutn Limited (50'1,) Japan.ese investors (502,) .

Primary aluminum·---,··

:·112jOBO·short·tons.

capacity.

.

FUrukawa Aluminium Go'. Ltd.

(v2rious locations) : Aluminum Company of Ame

rd

ca r

(33 %) .; ,)

japa.n~se investment (6~;)

.

Sflmifabrication 32,000 short tons, capaci ty

. r

- , ' . I

.'."'" i •

Sky Aluminium Co. (?roject):

Kaiser Aluminum & ..Chemical' Corp;

00'1'); Yawata Iron and Steel Co.

(180/), ;

Sho"" Denko _(5~) : Mitsubishi Reynolds Aluminium Co.:

Ltd. ('K:Homotomachi) : Reynolds

• J.\etals; Company

(33,,;

Mitsu bishi

(61'lL).·' '.'

" r

Semifabrication -64,000 short tons, capaci ty.

~emifabrication -22,000 short tons, capacity.

;.;j

CF ,14/ lli1i/1UC Appendix B

ProductJ:~.

ore is f'ound. ~·;T~i.neipalJ;)r in t.ropjeal coun t.ra es , Ctller countries have bauxf te but g€.'1'erall;r the dej.J0si1:8 nave been mor e limit~d~ They are, all d ecHni.ng in quanti t~f and in qua L:ity because lii' cumu Lat i.ve con sump-tion over the years, Substitutes for bauxite like clay, ne~beline, and other materials 'have been tri~d but are much more eXpensive to 'use than bauxite .. .: Some countrissmay use these substitutes to a limited extimt.

RuasLa ia DOl; using nepheline f01:'a small proportion of aluminium pz-odnctri.onvand obta'.ns by-produots of:'oement and fertilizer. But as long asbalOxite is availcebJe at 'acceptable cost to the industrialized countries, they .Hill 'continuevto use it even "-though they Inustd.ep€'nd.

very heavily on imports, as c.o es the UnitedStai;es. This isa point ':well x.ecognized. b;;t 8'ome: of 'tneoRuxite pr-oducdng 'COl.ll1tJ:':i_es· abd Ln the'

arrangements they have ~~Je with foreign producers to obtaL~ substantial

2. . ._ .. u'l ..y in spc.:~ .I....;it b ) but some also is mined

unc.e.rgz-ounu in Et..u.·o~·Jj an,. in t~le United States. U:1Cier the mo st

favo~ITable cCLdi~~o~s anc ~sing large earth m07ing machinery, bauxi~e_,,,_{. '} _.

miniiig" is inexpensive a:t'j,(L costs no more than digging and moving ear th , liuch of t"e lTo:dJ _bElU~,ite co ats US $2 to $4 per ton before shipment an^d, before royalties'a~dother payments to governments. The bauxite may be 'drfe^o and treated to obtain a higher conoentration of its aluminium content, and it is then moved to the alumina planto Here it is treated with a solution of hot caustio soda in order to extraot the aluminium

---..,...-~-y

^This ~ppe'ldixis revised from a portion of AlumiJ:rh~!LIndust_r.;y_Ca!!e:

'Stud,y, pr-epar-ed by the writer for use in a seminar of the Econorm.c Development Institute, International Bank for'Reconstruotion and Development, Washington, D.C., August 1964.

,., t~T ^{, , '}torr'Iv,~,

~ \...rv ....J..I-rf ~'C:::'~/C .,_vv

Appendix

B

Page 2

oxide called d.':':..<.n~':'~::;::.~ "..~..^L.+. l''c:JduceJ. ^iE J.d.""·b0 0...uantities, alumina costs between$35,atld$50 ^:Pb,:' tcn,';,tlclulj,!le; the baux.i teo 'I'h.is white powder is then moved. 1:.0 t:-,G 3.1uminl'~m s:naJ.ter vlhe.~·G tnl; a Iurui.na is poured into a series of fUj:'nac·~8 or ":pot:,;", disso.tJec.. in a liquid of molten cryolite, and the .a Iuminaum ~s aepar a ted ty passiiw l'i!rge amounts of eleotrioity through burning carbon electroQ8s, Tha alumini~m is removed from the pots in mel ted fan;', and poureu i.nto crude shapes called 122£.. or ingot.

This productcostsbatween $300 to $600 per ton to produce, including

th~ alumina,

'3. These ingots' are clien moved to s emi-cr'abr-Lcat.ing plants, Ingot is melted again 'and may be alloyed wi'th 2mall amounts of other metals such as copper, magn esium, s.i.LLcon and manganese. Tne metal is then, trans"

formed intjother shapes including pl.ate and sueet; f'oi.L] profiles calTed extrusions;' rod ar.d. bars; ca st ings j fo:rgjngs, and powder, 'I'hese forms 'are .'then gi.venTu.ri.her- -treatment ^j.B the same semi·-fabr.icating

.' . .

plants, or af'ter shipment 'to other plants Plate is shaped to be used on ships and armour-ed military vellj,81es~ Shee

c

is mads Lnto flat forms of coil's and strips anc1.'clrc)Ls. The fLat ror-ms are then converted into forms like 'mpain'oed, painted OE cLlemi,oal1y co Lour-ad procucts for housing;

into corruga ted ^fC' ^l.4J ^{-'-'-- __} ~,cl8 sirias and roors of bu.i.Ldang ; into cans, and i.ltto .co oko.ngu-t.e:nsL~_8 ancl parts for hous aho Id app'Lz.anc e s like

refrige~ators'anQ ~oa0tcrG ']:'r-lG foil is rnad e illto wra.ppings and

packages for c;,garett8B' ar d ^food, or oombined ,rith fibreboard, into can-like containers fo:' 1i'1ui<'.s can-like motor oil. Extrusions are made in various shap e s suer... as .:b(~,:u...:.s u3ed in - building construction 'and. ·:trans-por-tat icn equLpment , into tubes for pipes, and frames that are aaaembLed

Lnco windows and .door-s , Rod is 'drawn into "ire, and woven into 'e1ectrical ca1J;J;:"" and also made.Lnto nails, soreVls; and fences, Castings are made for such products as hea~J cooking utensils and parts of automobile motors. Forgings are shapes hammer-ed to give extra strength. to p~~ts

inai1:'plane:s and 'other p,'oductsthat must stand' upagainst hard usage.

Powder maybemadelnto paints aI-used as a fuel fn r ockets,

EVen. i.4/INR/J.OO

Appendix, B 11 Page 3

4. TJie prbduc'tive

oa:pAeitie~

;i;¥jitldividua.l plants

^atld'the irtvestllr~nts at

th:~'

differeh't iliilges

of

^c'th'e -b lliid.n1um 1ndustry

cover

'ii.-ivride

rk1'~e'

througlibut the worid.

Thep~odb.o\ii:>ti

ooHiS likehse

66vet-~'

il'ide range

ft-tlil?

high

ttl'

low. .T!leb1~g'eh"'H)in~ahhsLiitiasom~~ilJa:1F

compll.hle:;,'C;)-p~'tdul:e

^'l;thr

ow\', bauiite;!'S"m~i

ei:'ili'dsHndybu./

~-h.ti:h

^{te :fiom}

oth~i'1iJ,

&n:d. .QJle"supplement .ti!l.e:ii' , Iliinea, w'i<'th puroha s-ed ba:uxi til.• _'IJIklat make tjleir own .!I3.1iIlIlirla'. ,.6.(>Ille:'prodUOe thtlulJown·'e:leo·tric pOWeI:'.anlle.oome' buy it':

13f·i'oll\;.others •. Th-e results of so-wide a.variety of capa-ei,t.ii:es and' '"

Qondi-tiQn8 are thAt the.oos·t of cr-ude. aluminium ;ingot about six ;year_a ago 'fas as' low a's $:308 per metric ton oi'.14 ¢ per pound, in,-,Oanada and

;in :the.'United Stlil_t.es for some producers, and nelU'ly: twice: as high in:

-,Au$-n-alia at ab.OJ.l.t$600 per metric wn

Or

27 ¢'per poun d , In India, ui:!)PllJ.E!:;a f.9wyears ago 1o'.ere as high as $500 per metric ton 01':23 ¢ per

pound. ',' ;' -·".f.."

8$.

iph~loitest co~tealiMian

kI-<:i ^{US Slnel} t'ers

have'o'apa'oities between

<i!l-o,ob6' and.

330,000 metric'i6tfi{peI' year. '1'he'high cost Au~tranan:"

Bmeithha<i a oapaoitybf;i'3,odo' fuet:hc tons;

and

thW"t'-ro hi~h ^{oost .}

... - ' , ' , . ;' c:·;"C' :.,~^,.' ^{' " '} ^• ^{" ,} i·;· "~^I ^"' ' , " " " , ' . :

Indian smelters had capa6HH,'s respectively'o'f 2,200" and 5, 500'metHc tons per year. Such small stn'elters were able[1\b'bpii:ra'te(jfoI'-ih'(;16-f:~l ll!arkets b.eciluSllthey were Ilbie. to· sel.lllt: N'i§,~s muchhighe~,1;hanthfl world price\Ulg,~r the :proteoti'm of tari,i'fs and-o thez- tl1~d~ :Fes1;;rli~.;j;~ons

imposed by their governments. Thus, in 1958:'wheni·tne-woJ'ld Pl:'i!'>e:~,

ing'lj; _~/l.s22 1/2-!il p",r pounllpharg",d by the Canadili-U ~o:rW,' ,u,Qjl~)'j - (:l;hesupsic4J1.r3:'::,-of ..AlumiIlium. Umit\ild); and delivered ~j;,,:this prie,ec,,,

)i.a~where in .the :'world, the -protected price ;in-,A,ustr~ia:,wajS::a;r.9UJid;,\riJ:

27 ¢ ana. in· Izidua. 37 ¢ pe:i:CpoWld. ".' :,:, , ' . i ' ) ' · s"ct

6. Protection of the aluminium industry is praotised in many countries •

. ", ".' "..- . . ' ,J. ;.../ c.'-· " ' c ' '.i)L:~'),'~,: ' . . , .,' .":i~:,.:.L

This protection consists of import duties, import quotas, other taxe~

," , , .. ' -' ':i: '::,~-__ ,.' ".: .._, '.i:"· ( . ; ; ' :

,~jl_ ~:evieson imports , and speoial inoent ives given domestic produce;t's.

:.v_·~,J._·.. '. ."_ '" {' " ~':.~.~"Ii.::>-::.D

.

E/

CN .14f:tN'RflOO Appendix B .' Page 4

----_.-

^..

_-

,.'~_._---:

Tariffs and some other trade restrictions for various oountries are shown in Appendix TableR-l, including .the higher prices_-':' _. _:

_- _- ill'"

^some

.,'" .., . '. ' . ,.(, -:'....' , .... ~:'

eountr.ies than the world price (Canadian expert price). Although

p~ote'c~io~i~in h~s' allo~ed

very small smelters to be bullt

~ so~e'

• -"'-'... ,; ~,t'..- .

countries, there is a general incentive to increase the size of older Bmelters and to build' new ones much larger to produce

atl~~er o'cst~:

'~_..:~. ' . , : : . ' ";:: .1:!' ':'j

1••,:

_~ Australi,a, _t~ trend, has led to mul tiplyil:lg"by fo].U.': _ti,l]l~,s t)ae l3,OOO.'L:ton capaSlHy of ~he·. f~merlyuneeonomioa,J,Bmelter :t:o"reach., .:., 5-,l,OOQ.,!lletrictons.· 1i)u,~~JWan,.j;b,e);l,igh cost smelter bas. re.c,eptJY'geen dOl,1bled,.i;p capacity to. a.~o~.t?0,090mey-:;l.ctone.· Likewiee,:th~eb.Ol,s been a trE3l:)d all ov~r the'M@r;L.;L.:t9.,mo~rnizeexisting smel:t.ers ,by·

replacing ol!l.er. "pots" with mor~mod~,pots with l.arger~~papity....

';t'hie took .place in Jap~ a few yearl>,~o, and is B'!;ill taking plape .In the United States. One of the most modern and moet economical al~i.nium sme~,ters in the world is the 100,000 metric ton plant in southern

¥r'ance at

Nes, sUbst~tially

^completed ⁱⁿ

1962~

This smelter was

o :.:... _~,..'~ ' " ' . , ' . '--.j,.,' " ' . ,'., ..:B ,.'ir, \r . '

built, by the company Peohaney , This oompany is. now particip"!l ting with

~+'::'; -:', ' , ' f"J.-; : ' r.· ':.;::' ':'C(,"!__\~"

~wo American ccmpanies to build a

67,000

metric ton smelter in the

":'~"" , ' , . C ' - ' ' ' · j : : , ' ' !L:" ";-:'\.::;;c: f:::,'.I;'c:

United~tates that should be able to ?ompete with the lowest cost

.,' ,,-~'I' ',"i, '--:9,", ;::.,L_,~

aluminium produced anywhere in the world •

.,' .,: ;~:;~t!,:'" ,..~.. ,.L':': - '. " , , " . :.""';,:i- -"! ' '. ;;":; ".,:;~.)

",,,~.,,,,Qt~l'o!llO<l.'SI'l'l plants a:r19 19l1\iia.ler 'j;f,lf.1,th&a~' A 20,OPOIJIPPt'ic,ton pl-flnt ;wasCPl!lp).etedin _196~ by th,e A1um~i,j.lDl.Companyof Amer~ca,,;i.ql:"

MU;Lo9 ;wi·+,h ".market protected by the Mexic@;Oovernment.

A,AO,.Q90:,"

me1;1:'i,c..,tcn plant is being completed in 1964bU the same com.P8\ny,

¥L

Australia, aga:l.n with a protected market. This, ,oo[llpany is!lljilq)~Jl.i..~d

ing a plant in Surinam to be completed in 1966 .with about

W,99.0

metric tons of capacity, operating under the partial protection of tAe .'

::"'.::',':-_::"';:,~,':,': " . - ' .:;,H,.· .;r:; ;^l~~~

n2,I.':"';j':d~:J,."':"'-lilIropean Common Market.

'HJ:S-t'hus'

evident' that -tliEi-approprili'fe'

capa-"iiitjOf

art

aiumin"iuni 'l,iirilllteris affected both by the size o:fihe market it serves andtlHI'·1l.egl'ee of pro'tection i t receives from ·'the·:go'crerh:m~t.

tet, whether;~chprot'ectiiin is permarien~ or"teniPorary,theJllcist

desirable objective for any country is to obtain the lowest production

F/ ,::,.J

/ji"md/.i.OO

' .

-' ,

Appendix B Page

5

c ' , ·,.cpst..Th.91QQ,ililO-Uletric ton size is considered the optimum level by

",(Oc,some companies, particularly if no trade proteotion is obtained. The

new smelter bej,ng built in Ghana is of this size.

c',,'"tnvestments for a 100,000 ton smelter

.'-

--

9.

For such a plant if built in the United States, the reqUirements of materials, labour, electricity and investment may be ill~~~atedin the' accompanYL~g schedule~. This enterprise includes

an

assumed billb::i:te

min~

in the dar ibb ean area, an alumina plant, a smelter and associat'ed electric power- plant.

SCHEDULE I - Approximate Requirements for 100,000 Metric Ton

-' Aluininium smelter, USA, 1964

MATERIALS_,-_- _. AND_" ENERGY Bauxite, me~ric tons

'Colwersionof ' bauxite to alumina Calisticsoiit:i'; met:r'io'tons

Fuel

vil,

metric tons Elect.'icity

'Conve:;sicin of illumina to aluminium Alumina,l'letric tons

Carbon electrodes, metric tons Cryolite and aluminium fluoride,

metcLc tons

" ;l3auxite,,400, 000 to 500,000 , ..".... Men per ye "r

Alumina plant, 190,000 tons

'C,;,r" ; " , Men per j'ear

Bauxite, Exploration, mine, roads, equipment, ocean pier, housing for workers

Alumina plant

AluminiUm smelter ~/

-

_{._ '.} Power plant^~

" ,. Total i<l:.:v"'e"'s"-t"'m"'en=t"-- -l!~..loI:.u=~ __l!.=:~~~~~ ^_

~ Based on $125 per kw. in a 500,000 kw thermal power plant, shared with a public lctility •

•

10. Certain f ea t::.rc? 8~,":hh schedBlc ^C,l'':;.~.~2;; striking. The

invest-::.- 1. _','-'-' :.':.7":- . - . . . .

ment in the jnie\>:r~t3:l Cl1,terFdsE; i s \fE!:;Y ,great, about, j~'}40,000,000.

: '-\ -', '.' '!"" . . '.. ," '.- ' • , ','-' -.','

'But'it offe~'b c;Jp}oyme:tlt to

...

Les s ,th9P4:,OOO,pers011s. Tliis'"is an investment of n earLy $7,J,OOD for, each j?D., The, same ,tot'll i.'1vestment in aluminium rc,kj,ue.ti or;

ariii'-o.fu:e'f'-'fuailt.if~ctu~iiJg indu~:t;ies,

^{as well}

as in, ,;3.grie-ul;tur,c,;ro'uldci,tea'te thollsaiiils of jobs.

, ...1.'.;..:' _ . ' -.,. •

11L " 'Abbther strikinsf;a''cur'e of 'th'e"Schedule I is that to pr-oduce

100,000 tons of

alum'ihilim

^iT,^" ^lS^." ^.-^.^necessary^~ to ^use between 400

,,9

^{0 0 and}

batub_,te'~ g~t ^.t:: ^."^;,\

500,000 ' tons of

To

such a quan ti t;y- , of bauxate, most

-r.'

companies explore and develop their' own bauxite concess~ons~ In

. ','V", • .-.. . - . ' . - ·_",",:::~:-·~j:0;)S'jj ..., .::. , , " , '

<m,P..GvJillo:ped 'regi.o~~l'tiCl1±ft;:~~;W~J:r.-opi,cs where most bauxite is ____. •...tQ.WlQ. ....

.:.t.h.a._c.=p=id-..:1>iiil{r:;.:a:i:~

^0'1

ll;; ,;;;~tls;:':f

^{or ' trUck}

s,' hc>tlsJ.ng"f

• • ,'{' r . -':, to :: .;.'-'j':" .: ::' __'^,J .' - ; "; . _ ," _ ' , •.' ,~.- ^:

",:;:;;',o;~1oyees, 'Ins It'?;r:Y~',.~~ci.lities in order to ship outthebaluite. Such , ' ,-:"--·"i.a+'geb~uxite Y;leB:lG .ar o of [;J:eat interest tocount;r:'iBs _poss-es~g

; . J.;." . .'- ,. . . - ::_. ;... ,. ',_ :- . _:.' , _. '-':.' " ..~.'<,' ,"

- bauxit e , for it -g::t\'-~S '~hc:n u bc.>3is-=-'ro-y--'o.b,-t"aiii.?-.ng .

impprt[iJii-: revenues

<, ,~erely ^from SUl'p,]jv;n'g the 0"" of the aluminium iridustry even \{they :,:,.. :-.have no other s:ttC:E'GCf 'ehe :ind'Jstry.. 'I'he other

r~w,

materials. shown

. .,:,::..:J:(:-':::I:;_'-~ \"".' _:~..:.-._~'..__:~,...

in the 'Iable are n?s',ied in mucn'-smaller'-quantities 'and do' not have the

", , . c -l .

. supply JroblE,','S G! ·""Uyj,O'3.

1.2 .• , The SQh8d.:'1ll.:'Y·-'2-}~G'o ::,J10~'-TS that the investment in baux.ite l!1wes' :for . " ,'''oF,,: (

"'1 10C. ,000

ibn

a'Ch,iilhi:iln"-dmelLsr is only about iH6 million of the total

inves tment of $140:< 000 ) 000"

'~..I',".

'rhe r,~,lU~ining tnvestments in aLumdna ,plant,

..

^' ^{- . '} ^. ^..

,.-sm~L.ter and power- plant are each much l.irger~ The.'power .investment particularly 00113 for attention. Althougb

it

i~ ^{shown as}

$24

miilion, '1{'actually is part of' ,~. much largor power investm'1nt.llbar1i>dwictha

public utility in order to obtain a lower cost ,than if it were limited

",t~Lth.!Lsizemerely to fjerV8 the aluminium plant. It is assumed here to bea fuel burning plant, But if it were a hydroelectric plan~, the investment might be doub I.e or morep'er 'J',i-t of );lower.

1)10' .Becauae :P0i'lOl'

~:la.s'l_~b,G8rl

⁰ⁿ⁸ ^of ^th9 l.earL:i:ng 1J0StS 'iri

~f!.,f' ~~~.4~otion

.-.~::-~-':...:.::.::.:::..'.'...:....c:,

'.;c,of 'exude aluminium,

it"has

_,'"',, been well known in the ,b,is,tqr;r ,,9,:11: the·_. _.:; -- .-¥-,_..-r-:-::.....-_.'.~..

+-,i.,'al~in;Lum ^{Lndrs try:},t.~"'~':.,:st aluminium smeLters''ha:ve beerl" Located

...._.__

,,_~_. ·,:·;~)~-~

..

~-;;~~~tt~~.~::,;ll ·~~(·)··~L.:.:;~.~ .~^;...~-_..._--_ ...__...._....-... .'., ,,- '-'.^",j.

•

]jICN.14/mB/l.oo Appendix B Page

7

cJ.ose to low-oost sources of e1ectric .:power :rather than at bauxite mines whel'S,ell·ell. power has not often been available. Tb;ii3fact has recently influ:ehoed':countries like Ghana. and ,Australia whopbssess both bawd

te

anlt:19W:'cost' power rescurces iftlleir efforts to'a:ttract aluminium

industries~'

'eJn

the other hand,L,technological iDiprovements in generat-ing;'and:ii:i:-iuismitting electric power in the past 20 years have also

alloWed:~ti~lobation of aluminium _smelte~s closer to large _oonsumin~

llIarke%s''':fu:^jorder to save transportiltio" costs. Recent developments' in nU1il~r power for' 'very large plants _E7~!'10'will favour the location of aluminiiuilplants close to l,arge lIla.rkets" but Jmay also favour eventuall,Y the le6'atioli"Cli-lari{

sni'~l

ters close to the bauxite resources.

Crude aluminium cost elements

14. The

imp~rtance

of eachelementJ,ofJ cost in produoing crude

aluminium in~' a 100,000 tonsmel t-er"assumed 1;0 be buH t in the United

Dans le document Africa and the aluminum industry (Page 111-126)