Rio Tinto reports third quarter bauxite production rises 8.6%; Alcoa reports robust financial performance that exceeds operational challenges

This week saw some important events in the upstream sector of the aluminum industry, which includes bauxite, alumina and primary aluminum. One of the most notable events would be that the price of alumina exceeds 4500 RMB, breaking all records of the last thirteen years. Alumina prices have risen steadily since August. In addition, two major companies in the aluminum industry, Rio Tinto and Alcoa, announced their third quarter financial results. According to the reports, Rio Tinto’s bauxite production reached 15.1 million tons, up 2.7 percent quarter-on-quarter from 14.7 million tons and up 8.6 percent year-on-year from 13.9 million tons . Alcoa reported a sharp increase in net income from $20 million in the second quarter of 2024 to $90 million in the third quarter of 2024, driven by an increase in alumina prices coupled with stable raw material costs.

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The price of alumina has skyrocketed and has continued to rise throughout the week. On Monday, October 14, the price rose by RMB 63 per ton, followed by an increase of RMB 94 per ton, to end at RMB 4,304 per ton and RMB 4,398 per ton. As of October 16, the price had increased by RMB 101 per ton, reaching RMB 4,499 per ton. According to SMM analysis, the alumina price was RMB 4,556 per ton and RMB 4,607 per ton on October 17 and 18.

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Rio Tinto, a leading global mining company, has announced its production and operating results for the third quarter of 2024, ending September 30. The company achieved several new milestones, including a significant increase in bauxite production.

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On Wednesday, October 16, Alcoa Corporation, the world’s eighth-largest aluminum producer, announced its third-quarter results, which showed sequential increases in net income and adjusted EBITDA despite declining production and shipments. Alcoa reported a sharp increase in net income from $20 million in the second quarter of 2024 to $90 million in the third quarter of 2024, driven by an increase in alumina prices while keeping raw material costs stable.

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On October 11, 2024, Aluminum Bahrain (Alba), the world’s largest single-site smelter, celebrated two major safety milestones: achieving 25 million safe working hours without lost time injuries (LTI) and the eighth summer as a result, without heat-related injuries or illnesses. These successes were driven by additional proactive measures, including providing cooling towels to help employees and contractors regulate body temperature and conducting department-specific awareness campaigns.

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Aluminum Bahrain BSC (Alba) and United States-based Alcoa Corporation have strengthened their long-standing partnership by signing a new strategic agreement. Under this renewed contract, Alcoa will supply Alba with up to 16.5 million tonnes of smelting grade alumina over a ten-year period starting in 2026.

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In September 2024, China’s metallurgical alumina production recorded a month-on-month decline of 4.27 percent from its peak. However, year-on-year production increased by 2.69 percent to 6.732 million tons.

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Konstelec Engineers Limited (KEL), an engineering, procurement and construction company, has secured a significant contract worth INR 39.63 crores from National Aluminum Company (NALCO). The project must be completed within 12 months from the date of the Letter of Award (LoA).

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Cadoux Limited, a leading manufacturer of high-value critical minerals for electric vehicles and advanced technology applications, has secured an R&D tax incentive offset of $848,880. This payment will support its ongoing critical mineral projects targeting innovative process designs for the production of high purity alumina, as well as its Minhub strategy for downstream rare earth production in Darwin.

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Monadelphous, a leading Australian engineering group, has announced new contracts and extensions worth approximately A$160 million (US$106.99 million). The company has secured two one-year extensions for fixed asset maintenance and capital project sustainment at Rio Tinto’s iron ore operations in the Pilbara region of Western Australia.

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Since the beginning of this year, Shanxi Aluminum Industry has continuously strengthened its technical management system and alumina production standards. The company has actively implemented cost reduction initiatives in research and development, which have resulted in significant improvements in key technical performance and consumption metrics.

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ALRO, a leading European integrated aluminum producer, is expanding its presence in the North American market. The company has secured several contracts with delivery expected early next year. Although Chinese manufacturers have dominated this market for years, ALRO, an established name in the region, has started to reconnect with previous customers. This announcement was made during Aluminum 2024 in Düsseldorf, Germany, which was attended by over 800 exhibitors and partners from 50 countries.

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On October 16, 2024, Alcoa Corporation and IGNIS Equity Holdings, SL (IGNIS EQT), the majority shareholder of IGNIS Group of Companies, a vertically integrated energy company in Spain, announced that they are advancing a strategic cooperation agreement. The aim of this partnership is to support the continued operation of Alcoa’s facilities in San Ciprián.

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Alcoa Corporation is pleased to announce the appointment of Gaby Poirier as President of Alcoa Canada and Vice President (VP) of Global Transformation. In addition to these new responsibilities, Mr. Poirier will continue to serve as Regional Vice President of North America Operations and represent Alcoa on the Board of Directors of the Aluminum Association of Canada.

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The United States’ domestic primary aluminum production increased in July 2024, returning to May production levels. Compared to June’s output of 55,000 tons, U.S. production in July rose 2,000 tons from the previous month, according to the latest data from the U.S. Geological Survey.

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In September 2024, China’s aluminum production rose 1.45% year-on-year, in line with Shanghai Metal Market forecasts. The resumption of operations in Sichuan and Guizhou following technical upgrades contributed to this increase in production compared to the previous year.

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As the global economy recovers from the COVID-19 recession, demand for aluminum is expected to surge. The International Aluminum Institute predicts a 40% increase by 2030, requiring an additional 33 million tons of annual production. Karl Ágúst Matthíasson, co-founder and CEO of Icelandic aluminum analysis company DTE, has shared his insights on the aluminum industry’s prospects for the coming year.

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Hydro Energi AS has signed a long-term power purchase agreement (PPA) with Skellefteå Kraft AB to supply 2 TWh of renewable energy to Hydro’s aluminum plants in Norway from 2025 to 2032. This agreement guarantees Hydro access to 2 TWh from Skellefteå Kraft’s SE2 portfolio over the next eight years to support the operations of the company’s aluminum smelters in Norway.

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