"It is unlikely that Malaysian bauxite will take the place of Indonesian material in the long term. Malaysian bauxite is not particularly good quality and tends to have a high moisture content, rendering it potentially dangerous to ship (liquefaction of the ore). Moreover, the Malaysian government is now considering imposing an export tariff. Given the time it would take to bring a mine into production – particularly if railways and ports need to be built or refurbished – there is speculation and Core Consultants’ tends to agree with this view, that in a couple of years’ time the refineries could potentially run out of ore as such refineries and smelters are scrambling to purchase or invest in bauxite deposits."
