Bauxite Producer to Leverage Britannia’s Commodity Trading Division to Fulfill U.S. Demand
Britannia Mining, Inc. announced today, that its Malaysian partnership has enabled the Company’s commodities trading division to round out its portfolio with the inclusion of Bauxite – answering U.S. demand.
“Ford’s redesigned F150 pick-up truck will feature an all-aluminum body,” stated Kenneth Roberts, CEO of Britannia Mining. “When you’re talking about one of the country’s best-selling vehicles for the past 30 years, shifting from steel to all-aluminum body, you can get a sense of what the impact of shifting tides from steel to aluminum is making. Our partners in Malaysia have helped Britannia to position our commodities trading division to take full advantage of this shift, by having unfettered access to ready mined Bauxite. This both mitigates any risk on iron ore and rounds out our portfolio of highly tradable commodities in our move towards positioning for what we believe could be very lucrative revenues and healthy profits for 2015.”
Bauxite is a group of aluminum oxides which is the world’s main aluminum source. The United States imports at least 99% of its bauxite consumption, and mines very little of the small quantities existing in places like Arkansas, Alabama and Georgia. With a number of automakers making a shift from steel to aluminum, consumption demands are expected to increase exponentially. Industry consultant Mark Bodner said, “Aluminum sales will more than double in the auto industry over the next few years”.
The U.S. aluminum industry generates more than $65 billion a year in direct economic impact. When all suppliers and related business functions are taken into account, the industry drives $152 billion in economic impact—nearly 1 percent of GDP.
Mr. Roberts concluded, “Managing ready-mined resource contracts has made us more nimble, greatly mitigating our operational risk by allowing us to trade a diversified portfolio of commodities and position products in line with market sentiment, without incurring the exploration and/or carrying costs. We have access to a broad array of natural resources; mined and ready for distribution. This is the reason why we believe our 2015 value potential is so strong. When one commodity is down others such as bauxite are up. In the case of bauxite, it is currently coming into much higher demand, and our Malaysian partners have an abundant ready-mined supply for Britannia to trade.”
- 29 Dec, 2014
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