Aluminium: Extraction
How tropical weathering makes the ore
What this tab covers How it is mined, drilled or grown, and processed into a tradeable form: the main methods compared, their unit economics, by-products, and the companies that do this work globally and in India.Bauxite forms when tropical weathering leaches silica from rock, leaving aluminium-rich laterite near the surface. It is strip-mined from shallow pits, chiefly in Guinea, Australia, China and Brazil. Refineries dissolve it in caustic soda by the Bayer process to make alumina. As a rule, 4 tonnes of bauxite make 2 tonnes of alumina, which make 1 tonne of metal (USGS). Smelters then split alumina electrolytically, using so much power that traders call aluminium congealed electricity (Blas & Farchy). Some bauxite operations also yield gallium as a by-product (Tilton & Guzmán).
Primary aluminium passes through three plants: a bauxite mine, an alumina refinery and a smelter. Refineries sit near mines in Australia, Brazil, Guinea and India, or near ports in China that import bauxite. Smelters sit where electricity is cheap and reliable, because power is the largest variable cost. China adapted refineries to its own diaspore-rich bauxite with an extra sintering step and now imports most of the world's traded bauxite (Humphreys 2015). Secondary aluminium, made by remelting scrap, needs a fraction of the energy and supplies roughly a third of total metal use. Ingot is priced on the LME plus regional premiums.
Methods compared
| Method | Share of supply | Typical scale | Recovery / efficiency | By-products | Unit cost |
|---|---|---|---|---|---|
| Open-cut bauxite mining | virtually all alumina comes from bauxite (USGS) | world output about 440 Mt in 2025; Guinea 150 Mt, Australia 97 Mt | n/a | None of note at the mine | US import unit value of crude dry bauxite about $32/t f.a.s. (2025), indicative of seaborne value |
| Bayer refining to alumina (plus sintering for diaspore ores in China) | all smelter-grade alumina | world output about 150 Mt in 2025; a large refinery near Collie, Australia has 4.7 Mtpa capacity | about 2 t alumina from 4 t dry bauxite | Gallium is recovered from Bayer process liquor, mostly in China; bauxite residue is a large waste stream | US import unit value of metallurgical-grade alumina about $590/t (2025); at 2 t per t of metal that is about $1,200 of alumina in each tonne of aluminium (indicative; basis: typical industry range, not checked against a sourced 2025 figure) |
| Hall-Heroult electrolytic smelting | all primary aluminium; about 74 Mt in 2025 | world capacity 79.7 Mt in 2025; a 500 ktpa smelter in North Kalimantan, Indonesia was due to start by end-2025 | about 2 t alumina per t aluminium | None; carbon anode consumption and fluoride emissions must be controlled | n/a |
| Secondary aluminium from scrap | roughly 30 Mt a year: the gap between about 104 Mt of 2025 consumption (AL Circle) and 74 Mt of primary output (USGS), indicative | a 650 ktpa recycled flat-rolled mill in Mississippi began shipping in 2025 | n/a | Dross, from which some metal is recovered | n/a |
How each method works
Open-cut bauxite miningBauxite, a weathered tropical laterite, lies close to the surface. Overburden is stripped, the ore layer dug by excavators, sometimes crushed and washed, and railed or trucked to a refinery or port. Land is rehabilitated in strips behind the mining face.
Low-cost, high-volume mining, but deposits are in tropical areas with land-use, community and political risks (Guinea revoked a foreign firm's licences in 2025).
USGS MCS 2026, Bauxite and Alumina Bayer refining to alumina (plus sintering for diaspore ores in China)Crushed bauxite is digested in hot caustic soda under pressure. Alumina dissolves, impurities settle out as bauxite residue (red mud), and aluminium hydroxide is precipitated and calcined to alumina. Chinese refineries added a sintering stage to use high-diaspore local bauxite.
Mature and efficient, but uses caustic soda and energy and leaves large volumes of residue that must be stored safely.
USGS MCS 2026; Humphreys 2015 Hall-Heroult electrolytic smeltingAlumina is fed into pots of molten cryolite. Direct current passes from carbon anodes to the cathode, releasing oxygen as CO2 at the anode and depositing molten aluminium, which is siphoned off and cast. Potlines run continuously; a power cut of a few hours can freeze the pots.
Only commercial route to primary metal; output is tied to power cost and carbon intensity, which ranges from low (hydro) to very high (coal).
USGS MCS 2026; Blas and Farchy 2021 Secondary aluminium from scrapNew scrap from rolling, extrusion and stamping and old scrap such as used beverage cans, cars and window frames is sorted, de-coated and remelted, then alloyed and cast. Can-to-can loops are the most closed.
Far lower energy and emissions than primary metal, but alloy mixing limits which scrap can make which product.
USGS MCS 2026; AL Circle 2026 Unit economics are indicative ranges from the sources named; costs vary widely by deposit, region and year.Share produced as a by-product
About 5% of primary supply comes as a by-product (Nassar, Graedel & Harper 2015, approximate).Who does it: global
| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| Chalco (Aluminum Corporation of China) | China | bauxite, alumina, smelting (state-owned) | 8.08 Mt primary aluminium (plus 17.35 Mt metallurgical alumina) | 2025 | Mysteel report on Chalco 2025 results |
| China Hongqiao Group | China | alumina and smelting (Shandong, Yunnan) | 5.824 Mt aluminium alloy products sold | 2025 | Tiger Brokers news on China Hongqiao 2025 full-year results |
| Rusal | Russia | bauxite, alumina, smelting (Siberian hydro) | 3.99 Mt primary aluminium | 2024 | UC Rusal annual results 2024 (HKEX filing) |
| Emirates Global Aluminium (EGA) | UAE | smelting (gas power), Guinea bauxite | 2.84 Mt cast metal | 2025 | Khaleej Times on EGA 2025 results |
| Rio Tinto 2025 aluminium total not verified in sources checked, so left blank. | UK/Australia | bauxite, alumina, smelting (Canada hydro, Australia) | not published | 2025 | CRU Aluminum Market Update on Rio Tinto 2025 results |
| Alcoa | US | bauxite, alumina, smelting | 9.64 Mt alumina (full-year aluminium total not clearly stated in the release; 4Q25 aluminium output was 604 kt) | 2025 | Alcoa 4Q25 results, SEC Form 8-K exhibit 99.1 |
Who does it: India
| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| Vedanta (Jharsuguda, BALCO) | India | alumina (Lanjigarh) and smelting | 2.42 Mt aluminium | FY2025 | Vedanta Q4 FY25 press release, 30 April 2025 |
| Hindalco | India | bauxite, alumina (3.78 Mt) and smelting; Novelis rolling abroad | 1.34 Mt primary aluminium | FY2026 | Hindalco Integrated Annual Report 2025-26, Statutory Reports |
| NALCO (National Aluminium Company) | India | bauxite (Panchpatmali), alumina (Damanjodi) and smelting (Angul); state-owned | 472 kt cast aluminium metal (2.30 Mt alumina hydrate, 7.70 Mt bauxite) | FY2026 | NALCO press release on FY26 performance |
India is the second-largest aluminium producer, with about 4.2 Mt of smelter output, 8.2 Mt of alumina and 25 Mt of bauxite in 2025 (USGS), and supplied 8.5% of world unwrought aluminium exports by value in 2024 (UN Comtrade). Coal-fired captive power keeps costs low but carbon intensity high.