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Aluminium Production Credit Moves Forward

Australian Aluminium Council

The Australian Aluminium Council welcomes the commencement of consultation the eligibility and applicability of the Green Aluminium Production Credit. These production credits will provide this vital industry some of the transitional support needed as Australia’s energy infrastructure and systems develop, and energy pricing returns to competitive levels.

Responding to today’s announcement the Council’s CEO, Marghanita Johnson, said. “Competitive energy is the critical foundation that enables Australian businesses to compete internationally. Today’s announcement is the next important step in support of the industry’s transition to the competitive, reliable, lower-carbon energy needed for the aluminium industry to secure a sustainable future.”

“Australia is one of the few countries globally with the full aluminium value chain—bauxite mining, alumina refining, aluminium smelting, and extrusion—all undertaken domestically,” Ms Johnson said. “This policy supports not just resource extraction but also the transformation of those resources into high value finished products, creating more than 75,000 direct and indirect jobs, predominantly in regional Australia.”

“The natural advantages of our mineral reserves, energy resources, and highly skilled workforce can give us a competitive edge, but only if supported by the right policy frameworks, over the right timeframe” Ms Johnson said. Australia’s aluminium industry has long faced challenges including rising energy, labour, and capital costs, in parallel with protracted regulatory processes. The integrated nature of bauxite mining, alumina refining, aluminium smelting and extrusion processes in Australia means that efficient and effective regulatory processes for each step are critically important to the ongoing operation of the overall system. Today’s announcement must be supported by policies which:

1. Support delivery of internationally competitive supplies of clean energy;
2. Enable Australia to be sufficiently competitive to be able to attract global decarbonisation investment;
3. Recognise the risks facing the sector and list bauxite, alumina and aluminium critical minerals;

4.           Deliver environmental approval processes across the supply chain that appropriately balance the environmental rigour and protection with transparent timelines that reflect commercial needs; and

5.           Develop of long-term strategic partnerships with likeminded countries.

The Green Aluminium Production Credits are a significant step towards securing the future of Australia’s aluminium industry and strengthening Australia’s role as a leader in the energy transition.

About us:

The Australian Aluminium Council (the Council) represents Australia’s bauxite mining, alumina refining, aluminium smelting and downstream processing industries. The aluminium industry has been operating in Australia since 1955, and over the decades has been a significant contributor to the national economy. It includes six mines which collectively produce over 100 Mt per annum making Australia one of the world’s largest producers of bauxite. Australia is the world’s largest exporter of alumina with five alumina refineries producing around 17 Mt per annum of alumina. Australia is the seventh largest producer of aluminium, with four aluminium smelters and additional downstream processing industries including more than 20 extrusion presses. Aluminium is Australia’s highest earning manufacturing export. The industry directly employs more than 20,000 people. It also indirectly supports a further 55,000 families predominantly in regional Australia at pay rates 60% above the national manufacturing average. The industry contributes more than A$18 billion to Australia’s economy with annual export revenue in excess of A$15 billion.

Contact details:

Marghanita Johnson, CEO, Australian Aluminium Council

M +61 (0)466 224 636 or [email protected]