Queensland Alumina Ltd (QAL)

QAL supplies alumina to aluminium smelters worldwide for production of aluminium. QAL owns and operates its Gladstone Alumina Refinery to achieve this mission.

In 2018, this plant experienced an unexpected failure in its overpressure safety system, leading to the release of caustic spray that contaminated homes and cars in South Trees Industrial Suburb of Gladstone.

Company Overview

Alumina is the primary raw material for aluminium production and has many applications in construction, transportation and manufacturing. Queensland Alumina Ltd (QAL), one of the world’s largest alumina refineries located in Parsons Point South Trees Gladstone Australia produces approximately 3.8 million tonnes annually from bauxite mined from far north Queensland which travels over 2000km before being refined at QAL’s Gladstone Plant using their continuous four state “Bayer” process into high quality alumina.

The Company maintains an extensive international raw material supply network. Furthermore, Alcoa World Alumina and Chemicals (AWAC), a joint venture with Alcoa Inc consisting of worldwide refineries that supply AWAC’s global network of refineries with raw alumina that then flows back into global smelters producing aluminium for transport, aerospace and building construction uses, provides approximately 40% ownership to Alcoa Inc’s. AWAC supplies these refined alumina supplies as inputs.

In March 2022, Australia implemented sanctions against United Company Rusal (Rusal), along with certain individuals and entities associated with Rusal such as Oleg Deripaska and Viktor Vekselberg (the Designated Persons Sanctions). Under these measures, Rusal and its subsidiaries had to cease providing bauxite and alumina supplies to Queensland Alumina Limited (QAL), since doing so would violate Australian Sanctions Regime regulations.

QAL and Rio Tinto entities (the Respondents) entered into various contracts, such as participation agreements, tolling agreements and supply and shipping agreements. Under these arrangements, the Respondents received bauxite from Rusal subsidiary Alumina and Bauxite Company Ltd (ABC) before refining it into alumina for ABC and Rio Tinto entities on an hourly tolling basis and then delivered this alumina directly by QAL back to ABC/Rio Tinto entities.

The Federal Court’s ruling in this case is of great significance for firms conducting business with companies subject to sanctions. It examines the scope and application of prohibitions found within Sanctions law to complex contractual arrangements between sophisticated parties as well as providing insight into step-in clause interpretation for international supply and shipping contracts.

Industry Analysis

Qld Alumina Limited (QAL) is a publicly owned company engaged primarily in investing in bauxite mining, alumina refining and aluminium smelting. Operating internationally from Australia and Brazil with assets located both there and elsewhere; QAL’s revenue comes mainly from its 40% equity share in Alcoa World Alumina and Chemicals’ (AWAC) profit after deduction of expenses related to head office, interest expenses and AWAC distributions as well as its own cash flows from investments made on these sectors.

Its alumina is widely utilized across industries, from power generation and aluminum production, to electric vehicle production and high-purity alumina (HPA), an essential component for lithium-ion batteries. Furthermore, growth of the market can also be driven by renewable sources of energy generation.

The global alumina market was estimated at USD 49470 million in 2021 and projected to increase at an average compound annual growth rate of 2.8% until 2028, reaching a cumulative readjusted value of USD 58390 million by then. It can be divided into product type, application and region segments with key players such as Alcoa, Queensland Alumina Limited (QAL), Hindalco, Sao Luas Alumar Hydro Porto Trombetas Aluminum Corporation of China being some of the key names operating within it all.

One of the primary factors governing this industry is alumina cost; higher prices translate to more profit for producers of this commodity. Another contributor is an increasing supply of bauxite deposits; however, new technology has reduced production costs significantly.

As well, Australia’s government has placed restrictions on bauxite exploration and mining operations that should increase the price of alumina; consequently, prices of this substance are expected to increase over the coming years.

Alumina market projections predict it to be highly competitive. Alumina companies recognize this, and are actively searching for ways to increase their competitiveness by testing out new technologies and business processes in order to deliver superior customer experiences.

Financial Ratios

QAL operates one of the world’s largest alumina refineries at Parsons Point in South Trees in Gladstone. Bauxite mined from far northern Queensland is shipped 2,000km southwards for processing into alumina at this refinery before it is sent out into markets worldwide for further production into aluminium metal or other chemicals.

Gain insight into company growth and performance with financial ratios that provide more clarity. Find data on key metrics such as revenue, net income, profit margins and more; then compare this data against peer group averages for more complete analysis.

Know how the stock market values Qld Alumina Ltd by using its current price-to-book ratio. This ratio allows investors to see how much Qld Alumina is valued based on its assets; additionally it can reveal whether the company is over or under valued.

IBISWorld’s Alumina Limited profile gives you an in-depth analysis of this company, providing registered business details, enterprise synopsis, SWOT analysis and key financial ratios. In addition, this data includes key personnel information as well as an overview of corporate structure. Use this information to inform strategic decisions or benchmark similar companies within your industry.

Company Highlights

QLD Alumina Ltd operates one of the world’s largest alumina refineries located in Gladstone, Queensland. Alumina produced is used to manufacture aluminium used in transportation, aerospace and construction applications; additionally qld Alumina supplies alumina-based chemicals and refractory products to the market. Established on December 11, 2002 and headquartered out of Melbourne Australia.

Our alumina production comes from Western Australia’s world-class bauxite mine and refined at Queensland Alumina Refinery (QAL) on behalf of participants such as Rio Tinto, Alcoa World Alumina and Chemicals (AWAC), Kaiser Alumina Australia Pty Ltd and Aluminium Pechiney Australia Corp’s Queensland Plant (Queensland Plant). AWAC boasts an international network of refineries located across Australia, Brazil and Spain.

Alumina is used to produce primary aluminium through smelting, producing products for domestic and international markets such as foil, sheet and wire. The Company’s Gladstone refinery in Queensland boasts an annual capacity of 3.95 million tonnes; located on 3050-hectare site at Parsons Point & South Trees on Gladstone’s southern-eastern outskirts – also home to a wharf & storage facility adjacent to it.

The Board is comprised of independent Directors with diverse functional skills and experiences. The Company strives to ensure a balance of commercial, financial, and operational expertise. As it is comprised of only small members who take an active part in shaping strategic options and long term strategy for the Group, their input plays an essential role.

The Company has fostered an environment of accountability and transparency through the Code of Ethics. This document covers all ethical concerns facing the organisation, such as directors’ independence or acting in the best interests of the Group, among many other requirements. Furthermore, policies covering issues like director responsibilities, conflict of interest management, confidentiality agreements and whistleblowing complement this code of ethics.