The Australian Aluminium Council has intensified its appeal for bauxite, alumina and aluminium to be included on the country’s critical minerals list, as a new report exposes mounting risks to the nation's upstream aluminium sectors.

The report, titled ‘Vulnerabilities and Opportunities in Australia’s Upstream Aluminium Sectors’, underscores the increasing challenges facing Australia’s domestic aluminium supply chain, driven by rising geopolitical tensions, escalating costs and extended regulatory approval times.

Inclusion of these materials on the critical minerals list, the council argues, will not only bolster domestic industries and job creation, but also send a strong message to international trade partners about Australia’s commitment to securing its vital role in the global supply chain of materials essential for a low-carbon future.

“The current inclusion of aluminium on Australia’s strategic mineral list acknowledges the metal’s importance in the transition to net zero, but does not come with much needed policy support,” said Australian Aluminium Council CEO Marghanita Johnson.

“Instead, it is a 'watchlist' of minerals that would meet the criteria for being a critical mineral but are not currently considered vulnerable to disruption.”

Johnson warned that delays in recognising aluminium as a critical mineral could lead to the same pitfalls experienced by other key materials. “We do not want aluminium to become the new nickel which until early this year was also considered a strategic mineral. The government’s decision to move it to the critical minerals list in February was too little too late,” she said.

In the last 18 months, three of Australia’s alumina refineries have faced impairments, and one has been curtailed, a trend that Johnson said demands urgent government intervention. “We need the government to act.”

The report also advocates for regulatory reforms to unlock Australia’s bauxite potential. While Indonesia is set to increase its alumina refining capacity by six-million tonnes over the next five years, Australia grapples with rising capital, labour, and energy costs, exacerbated by prolonged regulatory approvals.

One of the greatest cost increases expected over the next five years will come from delays in environmental approvals, limiting access to bauxite for our alumina refineries. Indonesia can approve and build an integrated bauxite mine and alumina refinery faster than Australia can approve a bauxite mine.”

To safeguard the future of the aluminium industry, the Australian Aluminium Council has urged the government to immediately include bauxite, alumina and aluminium on its critical minerals list, streamline environmental approvals for bauxite mines and alumina refineries and support the aluminium industry’s pivotal role in the green economy, as bauxite, alumina and aluminium are key components in the global transition to a low-carbon future.

The Australian Aluminium Council represents the nation’s bauxite mining, alumina refining and aluminium smelting sectors, with Australia being the world’s largest producer of bauxite and exporter of alumina.

The industry employs more than 20 000 people directly and supports about 55 000 families, predominantly in regional areas.