Africa must raise bauxite output, BHP Billiton executive says

DUBAI -- Africa will have to raise its game as a host region for bauxite production if the world is to meet the growing demands of global aluminum production, Julius Matthys, marketing director of aluminum and alumina at BHP Billiton PLC said Monday. Currently, Africa supplies around 10% of the world's bauxite, the key ingredient used to make alumina. But Guinea alone holds around one third of the world's bauxite reserves, he said, meaning the country's production is falling short of its potential. Roughly four metric tons of bauxite makes two tons of alumina, which in turn makes one ton of aluminum metal. Aluminum production is expected by analysts to reach around 60 million tons by 2020. Latin America too represents new markets and opportunities for companies, although here, as in Africa, a "significant capital outlay" will be required to develop both reserves and energy supplies. The possibility of "more Mozals," BHP Billiton's aluminum smelter in Mozambique, is very possible for Africa, Matthys said. "We'd like to replicate the success of Mozal in other parts of Africa," he said. The company is currently developing a joint venture alumina refinery project in Guinea, he added.