MES: 4m-5m tpy

Large scale producer: concentrated

1994: 100 mines active, 107 million tons

Identified Bauxite reserves: 23 billion tons, 215 years of current production

production of 1 ton of alumina required 2-3 tons of bauxite

1994: price averaged $190

bauxite's characteristics have a significant impact on the design and efficiency of alumina facility

technological changes: increase the MES of refinery

facility cost: 750 million ($750 per ton of capacity), 5 years to complete

Cash operating cost: varied (depend on bauxite price and quality), average $180-190 in 1994

utilization at least 70%

concentrated geographically

Recent smelters built in Bahrain and France had two lines totaling about 280 pots and 215,000 to 230,000 tons of capacity

smelter cost: $1-1.2 billion (about $4500 per ton of capacity), 2 years to plan, 2 years to construct and 1 year to reach full production,

Production a ton of Aluminum: require 2 tons of alumina and 15 kilowatt hours of electricity

Technological improvement: newest plants require 13.5kWh per ton

locate close to low-cost source of electricity (the largest cost of smelting)

Cost structure (157 primary smelters, totaling 21 million tons of capacity )

no major technological breakthrough

Global market for aluminum

rolling

extruison

cable drawing

casting

world economic growth caused consumption climb over the long run

Transportation: 25% of world aluminum usage in 1993

container and packaging: 21.0%

Building and construction: 21.3%

Electrical applications: 9.2%

machinery and equipment: 8.7%

consumer durables: 7.3%