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Rules pose threat to bauxite growth in Asia-Pacific: report

Keywords: Tags  GBI Research, Asia-Pacific, Asia, bauxite, Steve Hodgson, Paul Adkins, Rusal Marketing, AZ China bauxite production

NEW YORK — Government regulations might hinder the growth of Asia-Pacific bauxite production, which is expected to rise to meet growing regional aluminum demand for aluminum, according to a report from GBI Research.

The region accounted for 64 percent of global bauxite production in 2011 and is expected to expand at a compound annual growth rate of 6.7 percent through 2020, according to London-based GBI. But the report cautioned that "regulatory issues imposed on the mining industries of many Asian countries may damage bauxite production levels in the region."

The report echoed remarks made at this week’s 2nd Annual Aluminum Summit, hosted by AMM in New York, where Rusal Marketing GmbH chief executive officer Steve Hodgson declared that supply growth potential in the region is "quite limited."

Also at the summit, Paul Adkins, managing director of Beijing-based AZ China, said that he didn’t see Indonesia as a "long-term supplier," despite its recent emergence as a prominent source of bauxite.

"Although their imports are large, the material only goes to a few companies, and those companies just happen to be well positioned on the cash/cost curve," he said.

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