16
Ashok Nandi & H. Mahadevan International Bauxite, Alumina & Aluminium Society (IBAAS) Can Indian alumina refineries afford to import bauxite?

Ashok Nandi & H. Mahadevan International Bauxite, Alumina

  • Upload
    others

  • View
    6

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Ashok Nandi & H. Mahadevan

International Bauxite, Alumina & Aluminium Society (IBAAS)

Can Indian alumina refineries afford to import

bauxite?

Page 2: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Introduction •India ranks third in the world in bauxite resources (about 3

billion tons), based on which many new Green field Alumina

Refineries have been planned and implemented / being

implemented.

•Most of the resource is however located in the tribal belts &

forest areas, for which the struggle seems to be a long one.

•Despite having good metallurgical bauxite resource, the

new Refineries are required to source bauxite from other

regions for the near and short terms, including importing

bauxite to feed the refineries.

•New Indian refineries are based on simple low pressure

digestion technology & hence can process only low silica

Gibbsitic Bauxites. Therefore high silica low alumina ore

continues to be exported from west coast of India to China,

which can process such ores.

Page 3: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Bauxite-Alumina Map of India

Eastern Ghats-

Largest

Metallurgical

Grade Bauxite

Belts of India

having about

2.4 Billion tons

of Lateritic

Bauxite

Resources.

Page 4: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Bauxite Requirement in India

•Two new Alumina Refineries of Eastern

Ghats are not able to mine their nominated

bauxite deposits due to forest and tribal

issues

•These refineries are looking for medium to

high grade imported bauxite for blending with

locally available aluminous laterites & low

grade bauxite.

•Transporting bauxite from western to the

eastern part of India costs almost same as

imported ore.

Page 5: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

STATUS EASTERN GHATS REFINERIES Refineries Status Capacity tpy Mining Status

Nalco Public Sector

Operating since 1987 2,100,000 Panchpatmali, Odisha Running mine

Utkal (HINDALCO) Private Sector

Commissioned in August, 2013

1,500,000 Baphlimali, Odisha Running mine

Vedanta Private Sector

Operating since 2006 1,000,000 Niyamgiri, Odisha. Yet to be mined; looking for alternate sources

Aditya Aluminium Private Sector

Construction yet to start

1,500,000 Kodingamali, Odisha Mine yet to be started

Anrak Private Sector

Commissioned partially in March, 2013 but full fledged operations to start

1,500,000 Jarella, Andhra Pradesh Yet to be mined; looking for alternate sources

Page 6: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Alumina Refinery-1

•Present alumina capacity-1 mtpa requiring about

3mtpa bauxite. Recently re-started based on local

mixed gibbsitic-boehmitic bauxite of Central India,

Gujarat and imported CBG, Guinea bauxite.

•Imported high cost ore is blended with laterites /

local low grade bauxite; therefore available

alumina content >45% preferred in imported ore.

•Trying to develop alternate laterite – bauxite

deposits in the same state.

Page 7: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Alumina Refinery 2

•Alumina production capacity-1.5 mtpa, might

require about 4 mtpa bauxite. Commissioning

started based on limited quantity of bauxite from

Gujarat.

•Looking for medium to high grade gibbsitic

bauxite, which can be blended with low grade

materials of local origin.

• Development of nominated bauxite deposit may

take 2 to 3 years. Company is scouting for laterite

and bauxite.

Page 8: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Bauxite Dependent Alumina Production Cost

Assumptions are made for a New

Low Pressure Alumina Refinery of India

Page 9: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Bauxite Quality From Various Sources Parameters Eastern

Ghats

Gujarat West coast

Central India

Laterite Eastern Ghats

Guinea Indonesia High

Grade

Al2O3% Total 44.0 44.0 46.0 45.0 44.0 54.6 48.0 Available alumina%

40.0 37.1 38.2 35.2 32.0 46.0 40.0

SiO2% Total 3.0 5.0 4.0 4.0 6.0 1.5 5.0 SiO2% Reactive 1.8 4.5 3.5 3.5 5.5 1.5 3.8

Moisture 9% 4% 4% 4% 5% 3% 14% Bond Work Index

Kwh/t 8.0 14.0 14.0 14.0 14.0 12.0 12.0

Overall Alumina recovery

36.8 34.1 35.1 32.3 29.4 42.3 36.8

Bxt Dry t/t alumina

2.7 2.9 2.8 3.1 3.4 2.4 2.7

Bxt(as is) t/t alumina

3.0 3.1 3.0 3.2 3.6 2.4 3.1

Page 10: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Bauxite Dependent Alumina Cost (US$)

Parameters Eastern Ghats

Gujarat

West coast

Central India

Laterite Eastern Ghats

CBG, Guinea

Indonesia High

Grade Handling cost 3.0 3.1 3.0 3.2 3.6 2.4 3.1

Crushing &Grinding Cost 8.9 9.2 8.9 9.6 10.7 7.3 9.3

Chemical Bound Soda/ton Alumina

43.5 117.3 88.6 96.2 166.3 31.5 90.5

Cost of Caustic Soda 18.0 48.7 36.8 39.9 69.0 13.1 37.6

Mud Load at LWS 1.2 1.3 1.3 1.4 1.5 1.1 1.2

Handling Cost of Red Mud

1.2 1.3 1.3 1.4 1.5 1.1 1.2

Storage Cost of Red Mud 2.4 2.6 2.6 2.8 3.1 2.1 2.4

TOTAL OF BXT.DEPENDENT ALUMINA PRODUCTION COST

94.2 218.7 236.1 220.9 246.6 212.7 278.3

Page 11: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Restricting Factors for Bauxite Import •The high available alumina and low reactive silica

imported bauxite can only substitute local laterites,

west coast and central Indian bauxite.

•Unlike China, India has resources of various grades

of aluminous laterites.

•The largest cost component for Indian refinery is

caustic soda, which is directly related to reactive

silica content of Bauxite.

•Further caustic soda prices are much higher in

India compared to China.

• Presently there is no arrangement of complex

bauxite beneficiation facility in India.

Page 12: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Implication of Caustic Soda Cost

Page 13: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Affordable Bauxite Cost for Present Alumina Price

Particulars Eastern

Ghats

West

Coast

Central

India

Alumin

ous

Laterite

CBG,

Guinea

Indones

ia

Affordable Bauxite Cost

US$ ton at CIF Vizag

14 – 15* 32 - 44 35 - 38 20 - 22 60– 80 40 – 42

Affordable Bauxite Cost

US$/ ton at FOB Loading

Port

7 – 8** 10 - 20 12 - 14 8 - 10 30-34 18– 20

*Not affordable cost but actual cost delivered to the Refinery

** Not affordable cost but actual cost FOB mines

Page 14: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Alumina Production Cost for New Refinery

Page 15: Ashok Nandi & H. Mahadevan International Bauxite, Alumina

Conclusion •New stand alone Indian Alumina Refineries

planned on the basis of local bauxite, cannot

afford to import high cost medium grade bauxite

for long term.

•In the short term, only good quality gibbsitic

bauxite will be viable for import in India.

•India has large laterite resources and any break

through in beneficiation (reduction of Kaolinitic

Silica) may drastically reduce the dependency.

•It might be possible to discuss alumina tolling

arrangement for short to medium term with one

of the Refinery.