Bauxite crisis

Opposition spokesman on Mining, Michael Peart, is recommending that the government suspend the levy on bauxite until the world economy improves.



There has been a decrease in the demand for alumina on the world market as the manufacturing industry; especially the automobile sector grapples with current economic challenges.



Mr Peart says as the crisis deepens the aluminum price continues to fall from a high earlier this year of over US$3,200 US per ton to just over US$1,700 per ton.



He is predicting that there will inevitably be cutbacks and closure of uneconomic alumina and aluminium plants worldwide depending on how long the global crisis lasts.



Already, he says the Russian government has had to bail out Rusal, the majority owner in Windalco and Alpart.



According to Mr Peart, the government and bauxite interests will have to work out ways to bring the cost of manufacturing alumina down if the sector is to make it through this period of economic crisis.



He says the prospects for the long term are good with aluminum usage in industry, commerce and transportation set to grow.



According to Mr Peart, the challenge is to stay alive and weather this period and be in a position to benefit from the recovery.