Australia has some of the world's best bauxite deposits.
While industrial development was in favour we started downstream processing making the bauxite into Alumina and the Alumina into Aluminium for export. We are one of the world's biggest Aluminium producers.
This refining and smelting is very energy intensive. It uses a lot of coal and gas.
These industries will shut down over time as refurbishment capital decisions arise and Australian energy gets more expensive. The production will shift to China.
Is the world better off for shifting Australian industry to China?
