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Bauxite Downstreaming: From Red Soil to Aluminum
Another question frequently asked in search engines is, "What can bauxite be made into?" and "Where does Indonesia export bauxite?" To answer this, we need to understand the concept of downstreaming.
Downstreaming is the process of increasing added value domestically before the commodity is sold to the market. In the context of bauxite, this means: mining bauxite, washing and improving the quality (washed bauxite), processing it into alumina, producing aluminum, and producing intermediate products (billets, slabs, coils) or finished products.
The government is encouraging the development of alumina smelters domestically, particularly in Kalimantan.
The goal is to make Indonesia known not only as a supplier of raw bauxite, but also as a producer of more valuable alumina and aluminum.
This policy has impacted export patterns and logistics needs. Instead of shipping large quantities of raw bauxite abroad, more and more industry players require shipping supporting materials, equipment, and downstream bauxite products between regions within Indonesia.
Factors Affecting Bauxite Value (Without Mentioning Price)
Besides asking "how much does bauxite cost per ton?", many people also want to know what makes one type of bauxite more valuable than another. Without mentioning numbers, we can break it down into several key factors.
- Alumina Content (Al2O3)
The higher the alumina content, the more attractive the bauxite is to processing plants. This content is usually the main parameter of bauxite quality.
- Reactive Silica Content
Excessively high silica content complicates the refining process and increases processing costs. Therefore, bauxite with a low silica content tends to be preferred.
- Moisture and Grain Size
Bauxite that is too wet will increase its weight and reduce transportation efficiency. Uniform grain size facilitates washing and processing at the mill.
- Access to Infrastructure and Ports