According to foreign media reports, a recent report by Wood Mackenzie estimates that restarting the aluminum industry in Venezuela would require a huge investment of between 1.6 billion and 2.3 billion US dollars. According to statistics, the annual output of Venezuela's aluminum industry has plummeted from over 600,000 tons at its peak to nearly zero by 2025. Meanwhile, the structural shortage of primary aluminum in the United States in 2025 will exceed 5 million tons.
This analysis was released at a time when the US policy towards Venezuela was undergoing a shift, and the country was once again drawing attention.
Uday Patel, the chief analyst of Wood Mackenzie, said: "Unlike some emerging regions, Venezuela's aluminum industry did not start from scratch. It already had - or at least once had - industrial-scale aluminum production. The country has long mined bauxite and once had a large aluminum production chain covering all aspects from alumina refining to metal smelting, and it also had power support from hydroelectric power plants in the Guyana region."
Venezuela possesses world-class bauxite resources, with proven reserves exceeding 300 million tons and inferred reserves reaching as high as 5 billion tons. These reserves are comparable to those of the major bauxite-producing countries in the world.
Since a large-scale power outage occurred across Venezuela in March 2019, the two major smelting plants, Alcasa and Venalum, have been largely shut down. The report states that given the current situation of Alcasa, only Venalum is worth restarting.
The Pijiguaos bauxite mine: It requires an investment of 100 to 200 million US dollars for the restoration/development of infrastructure; reconstruction of processing and transportation systems. The operational capacity is 2 million tons per year.
Interalumina Refinery: A capital investment of 500 to 600 million US dollars is required for the renovation of the crushing, leaching, precipitation and crystallization, and calcination systems; upgrading of utility facilities and environmental control systems. The production capacity is 1 million tons per year.
Venalum Smelting Plant: A capital investment of 1 billion to 1.5 billion US dollars is required for the renovation of electrolytic cells; the restoration of the power system, anode production, infrastructure and environmental improvement. The production capacity is 460,000 tons per year.
Other requirements: Funds for building a sound power supply system and improving transportation infrastructure.
